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Legendary Trader Peter Brandt Highlights Major Bitcoin Problem

Sun, 7/07/2024 – 10:42

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Peter Brandt spotted a bearish tendency that we are seeing exclusively in this market. Digital gold has been gradually losing its value despite being in the uptrend, but the worst thing is the magnitude of the correction we are seeing right now.

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Renowned for his precise forecasting and profound understanding of the market, Brandt noted that the current correction in Bitcoin should worry investors. The 200 exponential moving average, which has historically served as a reliable support line, has been broken by the cryptocurrency, which has lost a substantial amount of ground. This breach raises the possibility that a more significant correction is in progress.

BTCUSD
BTC/USD Chart by TradingView

Recently, the price of Bitcoin crashed below $58,000, causing massive market liquidations. Bitcoin is in a downtrend and has not been able to maintain its upward momentum. It is unclear how long this uptrend will last given the sharp contrast between the current market behavior and the bull run we saw earlier in this cycle.

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The cryptocurrency market has been affected by this global uncertainty, which has raised volatility and put pressure on sellers. The second major factor affecting Bitcoin and other cryptocurrencies is still the massive outflow of funds triggered by the selling pressure from Mt. Gox and the German government. Billions worth of BTC entered the market with a thin liquidity, causing a price drop we are witnessing right now.

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These legal obstacles are probably going to stay in place, which will put more pressure on the price of Bitcoin. The third factor contributing to the downturn is the dearth of new institutional inflows.

Significant institutional investment fueled the previous bull run, pushing Bitcoin to all-time highs. But these investments have slowed down in the current cycle, which has made the correction worse. A key test for Bitcoin is the current correction. We might see additional declines and possibly test the lower bounds of the uptrend that began in 2022 if the price is unable to hold above important support levels.

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