With the price of Bitcoin rising sharply to US$6800 (A$9700) in the past 24 hours, veteran trader Peter Brandt is predicting the leading cryptocurrency is on its way to a new all-time high above $50,000.
Bitcoin’s price has shrugged off the high profile Binance hack to increase a staggering 8 percent within 24 hours on Saturday, bringing its one month gain to 34 percent .
Other cryptocurrencies also surged between 5% and 13% over the same 24 hour period.
BTC’s parabolic move
Speaking with Ran NeuNer on CNBC’s Crypto Trader, Peter Brandt says it seems obvious to him Bitcoin has now hit a “very very clear bottom” and will soon experience the kind of parabolic move it experienced in 2013.
The question now is “how far does this go and exactly how does it go?”
According to Brandt, the market patterns from 2011 and 2012 that led to 2013’s meteoric rise look as if they’re being repeated.
Brandt says a parabolic move is a magnificent thing that usually only happens once in a decade. For BTC markets, however, the first one was seen in 2012, laying the groundwork for the 2013 high, and the second in 2015 was succeeded by December 2017 all-time high.
Two parabolic moves ‘unheard of’
“So we have two parabolic moves in the same market. That’s just unheard of,” Brandt explains.
He now believes that, following the correction that ground markets down across 2018, “there is a chance that we are going now into the third parabolic move of modern times.”
“The idea that you look at a market and consider it to be a long term chart when it’s only a decade long is pretty magnificent and then if you see the possibility of three parabolic moves in a decade’s period, that’s unheard of and that perhaps has not been seen since we saw German interest rates in the 1920s.”
Brandt predicts $50,000 BTC price
Asked by NeuNer where BTC would end up, he repeated his prediction from early April that Bitcoin could top $50,000.
“Well, I think $50,000… it has to get to $10,000 before it gets to $20,000,” he said.
Don’t break out the bubbly just yet though as he’s not predicting Bitcoin will rise in a straight line.
In his early April tweet, he suggested the price could pull back to $3150 before the next bull run, which is similar to what happened between 2013 and 2015.
“My longer term outlook is that whether from the Dec 2018 low or a retest of the same, another massive parabolic advance will occur, taking BTC to $50,000 in the years ahead.”
Altcoins are ‘cheap pretenders’
Bad news though for those of us who’ve invested in altcoins – Brandt recently tweeted that they are nothing but ‘cheap pretenders’
“How many of you who were first attracted to crypto investing/trading because of BTC have missed all or most of the BTC trend because you were sidetracked by cheap pretenders???” he tweeted somewhat snarkily.
Brandt, who has been investing for more than 40 years and has written numerous books on technical analysis famously predicted the market crash of early 2018, has been bullish on Bitcoin for months now.
On May 3 he suggested that market conditions are replicating those of November 2015.
“The last time Factor’s benchmark weekly MA was in the current profile of turning from down to up was in Nov 2015 just as $BTC began its move from $340 to $19,800.”
Bitcoin has surged in recent days
Crypto whales are also surfacing en masse as Bitcoin hits record highs for 2019.
Late in the week, some of the biggest BTC, ETH and XRP holders in existence have moved a total of US$218.6 million in crypto, with the biggest single transaction sending 9,000 BTC worth about $54.9 million from one unknown wallet to another.