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While the price of bitcoin is hovering above the $27,000 price level, cult trader Peter Brandt made a new prediction for it.
The trader believes that another price pullback may be required for BTC to rise. However, Brandt calls this price prediction a guess, adding that a guess is the best he can come up with.
Brandt told his followers to run and protect their holdings from anyone who is dogmatic about his price analysis.
“…If anyone is dogmatic about their genius, turn around and run protecting your wallet,” he wrote.
A major BTC price breakout may be imminent
Bitcoin has been trading lower in the past few days, with a 0.8% price drop in the last 24 hours.
Bitcoin is trading at over $27,000 Source: Tradingview.com
Although BTC closed on May 21 with a slight increase in price, the asset remains below the major pivot point, trading at $27,132 at press time.
Bitcoin has recorded a price range of 3.4% over the past seven days, according to well-known blockchain analytics firm Glassnode. The data confirms that the number one cryptocurrency asset is going through one of the busiest periods in the past three years.
According to the analytics company, the current price movement coincides with the bear trade registered in January 2023 and July 2020.
These two intervals preceded major market moves, suggesting high volatility is likely close at hand, Glassnode added. This observation is consistent with Brandt’s latest prediction, in which he claims that Bitcoin will rise after another jolt.
Meanwhile, Brandt is not the only analyst who believes that a price breakout after some pullbacks is not far off.
Cryptocurrency analyst Carl from the Moon noticed a symmetrical triangular pattern indicating consolidation. Carl identified a $25K or $29K target, depending on the direction of the price breakout.
Rising Bitcoin transaction fees represent a faint shine for potential bulls
While technical indicators point to significant movement in the price of bitcoin, recent reports from Glassnode have noted that rising network fees are driving the market down.
BTC transaction fees have skyrocketed as the Bitcoin network struggles with congestion due to massive unconfirmed transactions.
According to reports, network congestion was caused by an increase in the minting and transfer of Ordinal NFT and BRC20 tokens.
The network was flooded with transactions, resulting in overloaded nodes and an extremely large number of unconfirmed transactions.
This issue slowed down the speed of transactions and caused transaction fees to rise. This equally pushed users away from conducting bitcoin transactions, reducing transfer volumes.
As of May 20, the total volume of transfers in the Bitcoin network has decreased to $2.73 billion per day. This is well below the throughput of the over 15 trillion registered during the 2021 bull market.
– Featured image by Pexels, chart by TradingView