One of the most respected analysts in the industry has cautioned that Bitcoin (BTC) may drop to $5,500 for several months before it recovers. Peter Brandt predicts bitcoin price will drop to $5.5K in 2020.
Peter Brandt revealed his prediction of bitcoin’s low of $5,500 in a tweet message on November 21. Moreover, the message triggered a negative pressure in the market sending BTC/USD to trade at a low of $6,850.
Brandt: bear market duration “might surprise a person”.
Contending that whatever is coming next, might well maintain that trend, and make it stay long enough compared to the common viewpoint.
He claimed his prediction of $5,500 is not a steep decline from what Bitcoin was being traded at that point in time. However, he also stated that the element of surprise can be the duration of time and market conditions.
“I am thinking about a low in July 2020. That will wear out bulls quicker than a price correction.”
Reduction in price by half before block reward is reduced
If such a state of affairs persists, it might conflict strongly with Bitcoin observers’ current mindset. However, as per published reports, the famous Bitcoin Stock-to-Flow formula averages $8,300 for BTC / USD until May 2020.
A bull market will, at that stage, induce the Block Reward Halving Process. Mid-November, Tone Vays, a seasoned trader speculated that its influence could be demonstrated some months ahead.
Additionally, Vays conceded that Bitcoin could drop even lower than Brandt’s prediction to around $4,500, to which statistician, Willy Woo also acknowledged and stated that it is totally imaginable.
From the start of the week of November 10th, Bitcoin slumped over 15%, and according to Woo, this is the type of behavior that would illustrate markets in the future.
Moreover, Woo elaborated that he believes there could be more volatility with a short-term bear run, nevertheless, he also does not believe that price structure would repeat after dividing.
In July, during the BTC/USD price slump to below $9,500, after reaching a high of $13,800, Brandt speculated bitcoin might further incur losses to the tune of 80% of $13,800, which puts its price at approximately $2,760.