Trader Who Predicted Bitcoin’s 84% Drop Warns of Potential Dead Cat Bounce

Francisco Memoria

Peter Brandt, a 72-year-old veteran technical trader, has recently warned that bitcoin’s recent recovery could prove to be a dead cat bounce, which would mean the slump isn’t yet over. Brandt notably predicted that if this is a dead cat bounce, BTC will drop to $1,200.

Brandt is a well-known trader, who recently sparked discussion in cryptocurrency circles after a prediction he made in January, that bitcoin would drop 80%, was proven correct. At the time he predicted an under $4,000 price target.

This month, BTC dropped to little under $3,200 before it started to recover. At press time, it’s trading at about $4,100. Speaking to Yahoo Finance, Brandt revealed this wasn’t a difficult call, as other parabolic advances have typically resulted in similar crashes that can go up to 90%.

In the near future, he believes bitcoin will have less drastic price swings, but noted he doesn’t “think it’s going anywhere,” and pointed to the $4,600 mark. Per Brandt’s words, a bounce above $4,000 will mean the cryptocurrency’s recent recovery is a dead cat bounce, and not a bull rally.

If this is indeed a dead cat bounce, Brandt predicted a $1,200 low is in store for BTC, if the cryptocurrency drops below the $3,000 mark by the end of Q1 2019. The $1,200 mark, he added, is a high reached back in 2013.

"It’s a possibility, this is a strong downtrend. There is a tendency in bear markets to retest previous highs … but then I think it gets exciting again"

He added “crypto won’t have any friends at that point,” as the bear market will see “crypto die-hards” question their position in the market. The trader has, however, been careful enough to point out his predictions don’t mean he is a bitcoin bear.

This year Brandt has pointed out bitcoin could once again get to its all-time high, if it survives the current downtrend. Earlier this month, he claimed bitcoin had entered a stage in which “weak money capitulates and strong hands accumulate strategically.”

When asked about these strong hands, he noted he knows they are indeed buying BTC, while keeping hedged positions.

Speaking to CryptoGlobe Mati Greenspan, a senior market analyst at eToro, noted we could in the near future see a “Santa Claus” rally, as we’re seeing an “excellent setup for the market to try and form a bottom.”