Most bearish factor that can be dangerous for Bitcoin
Bitcoin has been in an uptrend for almost a year now. Analysts are predicting a rise to $100,000 or much higher – so it’s hard to be bearish on the top crypto asset at the moment.
However, an iconic trader with extensive experience in the Crypto Wealth markets now says there is an overwhelmingly bearish factor in Bitcoin – one you wouldn’t necessarily expect.
The reason is not a fundamental factor or an overheated technical indicator – it is the „laser eyes“ that are very common on Twitter right now. But why?
Peter Brandt: Laser eyes are the most bearish factor for Bitcoin
Bitcoin is booming and has once again attracted private investors, but this time finally institutional investors as well. The impact of the wealthy investor class on the price rise has been dramatic, leading to an increase of over 1000% in one year.
Outflows from top cryptocurrency exchanges exceed 10,000 BTC per week and have not yet subsided, although price action has recently paused. On-chain metrics and technical data both seem to support an uptrend that will continue for a while.
A career commodity trader who has accurately predicted major bitcoin trend changes in the past now cites the „most bearish factor“ for the cryptocurrency: Laser Eyes.
Laser eyes is a meme that recently found its way to crypto Twitter: Users update their avatars with red lasers as eyes. The trend has been driven by the likes of Elon Musk, Anthony Scaramucci, MicroStrategy CEO Michael Saylor and even members of Congress.
But why exactly is Peter Brandt so bothered by the meme culture currently sweeping cryptocurrency? He says it’s not just „obnoxious“, but „it’s stupid“ and if supporters want Bitcoin to be taken seriously, the community should stop acting like „children“.
Brandt’s statement echoes the views of „Black Swan“ author Nassim Nicholas Taleb, who berated the investor group as „sociopaths with the sophistication of amoebas“. This is indeed an extreme claim – however, the exuberance in the market was also extreme.
According to Brandt, „unbridled enthusiasm“ and „FOMO buying usually“ would typically lead to a deep or long correction. Bitcoin (Go to Plus500 Bitcoin buying guide) has been on a parabolic rise since March last year, and March is historically the worst month in the history of the cryptocurrency market.
In the past, Brandt had actually predicted the collapse of Bitcoin’s parabola. When a parabolic rise is broken, the trader said, an asset typically falls by about 80%.
Previous Bitcoin bear markets have been characterised by such a sharp decline. Could this now await Bitcoin as the euphoria slowly becomes extreme?