The price of Bitcoin has recently taken a plummet. As with any and all market movements, this is leading to some speculation over where the cryptocurrency market is heading next. Now, a well-known crypto market observer is joining in with his own bearish prediction.
Brandt: Bitcoin may hit $5,500 and “wear out bulls”
Specifically, Peter Brandt – a trader and financial analyst – came with this latest price suggestion in a tweet on November 21st. In the tweet, Brandt laid out that he currently considers the price of Bitcoin to have a floor around $5,500.
This prediction is quite low and notable, seeing as the premier cryptocurrency is currently trading around $6,900. Moreover, this current price is also after a major downturn in the cryptocurrency market following news that China may seek to “dispose of” local cryptocurrency exchanges.
The general market consensus has been that the price of Bitcoin would, instead, likely increase if this market uncertainty decreases. As such, the price of Bitcoin would likely trade closer to $10,000 than to $5,000.
Nevertheless, Brandt argues that Bitcoin is currently caught in a bearish trend. Consequently, this opens the door for a long-term decrease in the price of Bitcoin. Brandt went on to outline his reasoning in the tweet, noting that some may underestimate the length of a potential bear market.
“My target of $5,500 is not far below today’s low. But I think the surprise might be in the duration and nature of market.”
Observers are split on whether Bitcoin’s price will rally or decline
In addition to this, Brandt also clarified the timeline he is talking about. “I am thinking about a low in July 2020,” Brandt noted, indicating that a bearish market could go on for the better part of a year. “That will wear out bulls quicker than a price correction,” Brandt continued.
Whether Brandt is correct or not, his prediction goes against the general sentiment of other cryptocurrency observers. Many other predictions expect the cryptocurrency market and Bitcoin to both make gains in the coming year.
However, there are some others who share Brandt’s prediction. For example, Tone Vays has said that there is a risk that Bitcoin could potentially drop as low as $4,500.
As those watching the cryptocurrency markets will know, the price of Bitcoin is generally a helpful tool for gauging the performance of the wider cryptocurrency market.
Nonetheless, it will be interesting to watch the cryptocurrency market during the coming weeks and 2020 to keep an eye on Bitcoin’s performance to see whether Brandt’s prediction line up.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.