Bitcoin is currently undergoing an overstretched rally last seen during 2013. In response to this, Peter Brandt, a well-known analyst on interpreting chart patterns warned that BTC could soon experience a $50,000 correction. He has been previously credited for correctly predicting bitcoin’s steep price correction in 2018.
Bitcoin Closes Six-Months Green Candles Since 2013
Bitcoin has just closed six consecutive monthly green candles for the first time since April 2013. Given, history repeats itself, Bitcoin could soon experience gigantic gains this year.
In April 2013, the digital asset closed around $140 after posting six green monthly candles. In the next two months, the digital asset dropped to less than $100. Over the following six months, Bitcoin surged by 700% above $1,000 for the first time.
In a similar price pattern to the 2017 bull run, the markets saw five consecutive green monthly candles into September 2020. The same month, BTC experienced price consolidation, while surging into new all-time highs in October. Eventually, the cryptocurrency rallied from $5,000 to almost $20,000 by the end of the year.
However, the last time the rally was overstretched, the cryptocurrency saw consecutive corrections the following three months in 2013, falling from $140 to $62.
Despite Bitcoin seeing five green monthly candles at a stretch during 2015, the early weeks of 2016 saw BTC crash by 20% before producing several months of consolidation.
Peter Brandt Warns About a $50,000 Correction for BTC
Bitcoin (BTC) is about halfway through its current bull market that originated in March 2020. Given that Bitcoin is currently under the eyes of institutional and corporate adoption, things might certainly be different this time around.
According to Peter Brandt, a veteran analyst and investor who’s been following commodity markets for more than four decades, Bitcoin could face a $50,000 correction. Brandt is well known in the crypto community for correctly interpreting chart patterns.
In a sarcastic reference to the laser eye meme that has become popular with the bulls, Brandt said:
“I will use my laser eyes when $BTC experiences a $50,000 correction and many of you swap your lasers for tears.”