Although bitcoin is already down more than 30% from its marked ATH last month, Peter Brandt believes the asset may not yet have bottomed out. The CEO of Factor LLC noted that there had not yet been a high-volume panic capitulation to describe this background as with previous fixes.
Bitcoin Is Yet to Bottom Out?
It was just over a month ago when the entire cryptocurrency landscape was highly bullish on positive developments coming from all directions. Perhaps the most notable news at the time – that the US will finally have a Bitcoin ETF, even if it’s a futures-based one – propelled a massive rally culminating in breaking the previous all-time high and registering a new one at $69,000.
But a lot can change in the ever-volatile digital asset space, and it has. Instead of continuing its 2021 bull run, BTC reversed course and began to gradually lose value.
Now, less than six weeks later, bitcoin finds itself fighting to stay above $46,000, meaning that the asset has lost more than 33% of its value in this timeframe.
While this in itself is a substantial price drop, popular trader Peter Brandt believes the generally low volume and lack of ‘high volume panic capitulation’ could mean BTC is yet to be released. wood.
As Brandt’s chart shows, the trading volumes have remained relatively low, even during the massive crash two weeks ago. On previous occasions, the volumes skyrocketed when BTC was on a downturn, which later on turned out to be the local bottoms.
Perhaps the most notable example was in March 2020, when bitcoin fell more than 50% on a day when the COVID-19 threat officially became a pandemic. Overall spot trading volumes hit a new ATH and BTC has never dropped back to these levels again.
Negativity Is Back
With the aforementioned price decline, the general mood among the majority of the crypto community turned negative, which is to be expected to a large extent.
Along with the feelings of extreme fear shown by the BTC Fear and Greed Index, analytical resource Santiment pointed out another worrying sign. As bitcoin hovered below $ 50,000 for a week, the company saw the “most negative trader comment since early October.”
However, it’s worth noting that BTC typically tends to do the opposite of what people expect from it, which could be a “good sign prices can finally bounce,” said Santiment.
