Extreme Crypto Turmoil Points to Bottom, Veteran Suggests

⚡ KEY TAKEAWAYS

Bitcoin’s sharp drop below a key price level has fueled widespread fear.
Veteran trader Peter Brandt says such extreme fear often precedes market recoveries.
Other analysts say the correction could mean the confirmation of a full bear market.

Bitcoin today crashed below $90,000 for the first time in 7 months, creating more panic. Veteran trader Peter Brandt says this level of turmoil usually suggests the bottom is close, and a trend reversal could be on the horizon.

Brandt in an X post stated that it is at the point when even the most diehard holders give up that the market starts to recover, judging from his over sixty years of trading.

Altcoins have had a worse experience as the price of bitcoin continues to dip, leading investors to give up on the market.

https://twitter.com/PeterLBrandt/status/1990581845810167928

“Worshiping at the Porcelain altar”

The expression “worshipping at the porcelain altar” is a colloquial way of describing a person kneeling at a toilet seat and vomiting.

In trading as used by Brandt, it is used to describe a situation where a trader experiences so much anxiety, distress, or panic due to severe market losses or volatility that they get physically ill.

The veteran seems to suggest that the current market is approaching this level of pain, in which case a bottom and potential trend reversal could be close.

This major crash in bitcoin’s price follows a discouraging weekly close which made several crypto analysts conclude that a bear market is in full swing.

Local Bottom or Start of Bear Market?

Bitcoin entered a death cross recently, coinciding with the drastic Bitcoin drop. According to another analyst, this could mean the bottom is in, or that a bear market has been confirmed.

https://twitter.com/ali_charts/status/1990629032992641162

If it turns out as Brandt suggests, a reversal may be around, promising a relief. However if the death cross is confirming a bear market, a lot more pain may be on the way before a lasting reversal kicks in.