Veteran trader and chart guru Peter Brandt has made a brutal correlation between the current Bitcoin market correction and the appearance of ‘laser eyes’ on Twitter.
In a tweet On April 18, the technical analyst linked the correction to irrational exuberance in markets, as illustrated by the meme:
‘The chance of a correction in cryptos is directly related to the appearance of laser eyes on Twitter. Do you want to end the correction? Get rid of your laser eyes. ”
The laser-eye meme, which initially circulated on crypto-social media in February 2021, has seen crypto-influencers, industry leaders and regular users change their Twitter profile photos to include laser-eyes. The fad was to support the price increase of Bitcoin until it reached $ 100,000.
Coincidentally, it also roughly coincided with a local Bitcoin pricing peak that reached $ 57,800 on Feb. 21 before being adjusted 25% a week later to $ 43,500.
In this week’s drop, Bitcoin corrected from its recent high of $ 64,600 on April 14 to current prices of $ 53,600 – a 17% move at the time of writing.
But Brandt is actually not just as worried about the withdrawal. Brandt’s withdrawal figures bring the current correction closer to 20%, which he says is ‘historically very soft’. In a tweet from April 20, he said there is a strong history of Bitcoin bull trends to test the 18-week moving average, which was then $ 46,615. This would result in a much larger correction of about 28%.
The decline in Bitcoin of 20.0% so far is historically very mild.
There is a strong history of $ BTC bull tendencies to test the 18-week MA (currently 46,615).
I personally doubt if such a retest will take place, but Bitcoin has a history of surprises. pic.twitter.com/lyfXlgpAHK– Peter Brandt (@PeterLBrandt) 19 April 2021
According to Brandt’s data, the average correction size of the last 14 withdrawals is about 35%. A drop in this level will bring BTC prices back to $ 42,000.
Other analysts also pointed to the historical record as a reason not to worry. ‘Rekt Capital’ tweeted that the dip in February was three times deeper than this week’s dip:
In February, Altcoin Market Cap fell -21%
Then Altcoin Market Cap rose + 90% thereafter
Now Altcoin Market Cap is -7% lower than its All Time Highs
The February dip was three times deeper than this one
People also asked for a new Bear Market in February# Crypto
– Rekt Capital (@rektcapital) 21 April 2021
Brandt explained his ‘laser eye’ theory in an interview with crypto researcher Laura Shin on April 13, saying that over-enthusiasm in any market is always a warning sign:
“The more people put on their laser eyes, you know the market is going to hit at least a while and stop going upright … When people start bumping their chest in public,” I told Bitcoin. I own Bitcoin. Look at me. I have laser eyes. “It will always be a sign that the market is at least going to rest. ”
At the time of writing, BTC is trading 5% at $ 53,600 over the past 24 hours.