• Peter Brandt recently warned that two gaps in Bitcoin’s chart could cause its value to drop.
• The surge of liquidation and bank runs from the failure of SVB Bank have caused many investors to turn to cryptocurrencies for safety.
• According to the idea of gaps, the market will eventually return to fill these empty regions, leading to a reversal in price at some point in the future.
Peter Brandt Warns Chart Gaps Could Bring BTC Down
A well-known trader named Peter Brandt recently went to Twitter to highlight two significant gaps in bitcoin’s chart that still need to be filled. He told traders to short bitcoin, insinuating that the digital currency’s value would decline in the not-too-distant future.
The Impact of SVB Bank’s Failure
The latest surge above $28,000 for bitcoin has been driven by a wave of liquidations that followed the failure of SVB bank and the subsequent bank run. As a result of this turbulence in the conventional financial sector, many investors have begun looking towards cryptocurrencies as a way of protecting their assets from further market collapse.
What Are Chart Gaps?
On a chart, gaps occur when an item’s price moves up or down significantly without any trading activity between those price levels. A significant shift in sentiment or important news often triggers them. According to this theory, these gaps will eventually close and lead to a reversal in price at some point.
Investors Must Take Caution
It is essential for traders and investors alike to keep an eye on the market and consider what these gaps mean before making decisions related to their investments. Because cryptocurrencies are inherently volatile, it is important for traders and investors alike do their own research before investing anything into crypto markets.
Conclusion
Although Bitcoin has been quite popular among investors who are seeking shelter from market volatility, it is important for them take precautionary measures while making investments related cryptocurrency markets due its inherent volatility.