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The recent crypto sell-off could be a mere dip within a long-term uptrend. That’s according to chartist Peter Brandt, CEO of Factor LLC, a research and trading firm.
When asked what it would take for bitcoin (BTC) to get to $200,000, Brandt said, "I think it's going to take a market that's going to go up on a parabolic basis – and that's what bitcoin has done."
Bitcoin was trading around $37,000 at press time and is down 45% from its all-time high near $69,000 reached in November 2021. The sharp sell-off accelerated as some traders were forced to liquidate long positions over the past week.
“We haven’t seen the kind of volume expansion that we’ve seen in previous short-term bottoms in bitcoin,” Brandt said during an interview on CoinDesk’s “First Mover” show on Tuesday.
High trading volume on price dips typically signal capitulation among sellers. That means further downside is likely, which could lead to a “wash out below $30,000, and down toward $27,000,” according to Brandt.
“We can get a sellers panic somewhere in the next 30 to 60 days,” Brandt said.
For now, BTC is locked within a tight price range between $33,000 and $42,000 and has been trading in lock step with equities.
“After we’ve seen a 50% decline in bitcoin, now is the time to start recommitting to a long-term narrative,” Brandt said.