Bitcoin could regain its all-time high of $125,100 next week, but not without another major correction, according to veteran trader Peter Brandt.
“We expect a major cull to be confirmed quickly by ATH within the next week or so,” he said, although he acknowledged a more bearish outcome was possible.
“Or a violation of the parabola has historically caused a 75% price drop each time. I think the days of 80% declines are over, but we’ll probably be back to $50,000 to $60,000 and trying banana peels.”
Traders need to consider ‘long-term risks’, says analyst
The cryptocurrency market crashed on Friday after US President Donald Trump announced 100% tariffs on Chinese goods, causing more than $19 billion in liquidations across the market.
According to CoinMarketCap, Bitcoin (BTC) fell from about $121,000 to $102,000 on Friday before rebounding to about $112,400 at the time of publication.
“If anything, this weekend was a reminder that we have to be very careful with leverage. Even multiples above 1.5x are risky,” Charles Edwards, founder of Capriol Investments, told Cointelegraph.
“That does happen, and you always have to consider long-term, multi-year risks,” he said. He said the weekend volatility was temporary and the outlook for the coming weeks was simply “upward.”
Bitcoin has fallen by 7.51% over the past 7 days. sauce: coin market cap
Other analysts remain optimistic, citing broader macroeconomic signals as hinting at the potential for new capital to flow into the crypto market in the coming weeks.
“Buy anything,” says BitMEX co-founder Arthur Hayes
BitMEX co-founder Arthur Hayes said on Tuesday’s XPost that there may be a buying opportunity in the crypto market after Federal Reserve Chairman Jerome Powell suggested that quantitative tightening is “over.”
“Back up the truck and buy everything,” Hayes said.
Quantitative easing is bullish for cryptocurrencies because it encourages banks to expand lending and lowers interest rates, making it cheaper for consumers and businesses to borrow.
“What’s important for Bitcoin right now is the underlying economic data,” Swyftx principal analyst Pav Hundal told Cointelegraph on Tuesday.
“Inflation is now facing a double blow from lower oil prices and lower demand. At the same time, the U.S. labor market is showing signs of distress,” Hundal said, as U.S. inflation reached 2.90% in August, the highest level since January.
“The Fed has a mandate to reach full employment, and it feels inevitable that we will see another rate cut this month. This is Bitcoin’s nirvana.”
Meanwhile, macroeconomist Lynn Alden recently said on a podcast that she thinks “the next quarter is probably going to be quite favorable” for Bitcoin.
