The current bull run of BTC has been incredibly astonishing and has surprised the entire market. However, is there still a possibility of a potential crash in the price of BTC?
According to analyst Peter Brandt, there might be an imminent crash on the horizon. He tweeted the following just a couple of hours back:
The analogue concept is a foundational premise of chart analysis — that forms tend to repeat, even in different time frames. Nasdaq 100 in 1999-2000 vs. BTC currently. Advance above 12444 violates possible analogue $BTC Forewarned = fore-ready pic.twitter.com/PzYr0MgG1v
— Peter Brandt (@PeterLBrandt) June 30, 2019
Brandt has compared BTC to dotcom bubble which was a popular phase for tech companies back in the day, when most companies were buying a “.com” for themselves. However, like most other fads, the tech bubble popped back in 2000 after reaching a glorious height.
Similarly, Brandt believes that BTC’s current chart formation looks a lot like that of Nasdaq 100 in 1990-2000. He has brought into discussion the theory of analogues which claims that forms tend to repeat themselves, even if they are in different time frames.
Hence, Brandt believes that a pop similar to that of 2000, could be on the horizon for BTC. Brandt suggests that this fractal or analogue, would be violated if Bitcoin reached about $12,444. Understandably, the Twitterati came at him with different opinions and most seemed to disagree with his estimations.
Many are of the opinion that this theory doesn’t stand valid because the time frames are extremely different for Nasdaq and BTC, and hence drawing a parallel wouldn’t be prudent.
To be fair, it makes sense to be apprehensive about the current bull run of BTC, but the market sentiment around the crypto is currently very strong, and an immediate crash might not be on the horizon.