Gap in Bitcoin Chart Could Bring Down Value: Peter Brandt

20. März 2023   |   by admin

• Peter Brandt recently went to Twitter to highlight two significant gaps in bitcoin’s chart that still need to be filled, and recommended traders to short the digital currency.
• The surge in the value of bitcoin has been driven by a wave of liquidations following the failure of SVB bank and the subsequent bank run.
• According to the idea of gaps, the market will ultimately return to these empty regions and fill the gap, which will lead 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.

What are Chart Gaps?

On a chart, gaps are the empty areas that develop when an item’s price dramatically moves up or down, but there is no trading activity between these price levels. A substantial change in the attitude of the market or dissemination of important news often brings them on.

The Market Surge

The latest surge above $28,000 for bitcoin has been driven by a wave of liquidations that followed failure SVB bank and subsequent bank run. Many investors have begun looking towards cryptocurrencies as a haven in hopes of shielding their assets from market collapse.

Gaps Hypothesis

The gaps hypothesis proposes that all gaps in markets ought to be filled at some point in future. According to this theory, if these gaps aren’t filled it could lead to a decrease in Bitcoin’s value.

It is essential for traders and investors alike take extra caution when it comes cryptocurrency investments due its inherently unstable character. Despite this warning it is still important for investors remain aware of potential ramifications associated with unfilled chart gaps.