The seasoned trader who correctly forecast Bitcoin’s 2018 meltdown has issued a new warning that a significant drop is possible.
If Bitcoin does not recover to its May 31 high of roughly $32,000 anytime soon, veteran market analyst Peter Brandt advised his 651,800 Twitter followers, a mass surrender event is expected, leading to a continuing drop.
“Unless Bitcoin (BTC) can close above the high on May 31st, this chart could become a textbook example of the famous ‘Drano’ chart pattern.”
Source: Peter Brandt/Twitter
Bitcoin appears to have broken out of a huge sideways channel on Brandt’s chart, with his next firm support on the weekly time frame near his target of $12,700.
Bitcoin’s price has dropped from $31,589 to $20,846, a decline of more than 34% in just seven days. When combined with Brandt’s aim, the risk of Bitcoin continuing to fall is greater than 40%.
According to Binance’s Bitcoin transaction data, an increasing number of BTC holders have chosen to “surrender” in order to liquidate their positions, resulting in massive losses in desperation.
However, other investors took advantage of the market’s drop and profited by more than 2000%. How did they manage to do it? If you want to discover the solution, you must first comprehend one of today’s most popular investment strategies: Trading cryptocurrency futures with a 100-fold leverage.
Is There a Difference Between It and the Spot?
To make a profit, the typical spot can only purchase up and wait for the price to rise. You can buy up (go long) or buy down (go short) using 100 times leveraged futures trading, which means you can benefit whether the market rises or falls. Furthermore, you have a 100-fold leverage to increase your profits.
What Is 100x Leverage and How Does It Work?
With 100x leverage, traders can deposit 1 BTC to open a position worth 100 BTC by going long (predicting the price of BTC will rise) or short (predicting the price of BTC will fall) (predicting BTC price will be down). If we use 1 BTC to open a short perpetual contract at $32,000 and terminate it when Bitcoin is trading at $22,000, our profit will be ($32,000- $22,000) * 100 BTC / $22,000 = 45.45 BTC, resulting in a 3124 percent return on investment.
Pitt24 uploaded the following image on Bitwell’s social media:
“At the early of May, I got 3 BTCs at $39,000 each. I thought the market would go up soon, but the next four weeks made me deeply feel what despair is! Later, a friend recommended me to try Bitwells, and I had very good experiences. I deposit 0.5BTC for trading. However, in just 7 days, Jesues, I actually earned 4.5BTCs! It recovered the loss of the previous purchase of coins, and brough me extra $20,000.”
Bitwells is a major crypto derivatives trading platform that offers futures trading with 100x leverage on a variety of trading pairs, including BTC, ETH, LTC, EOS, XRP, and others. Bitwells does not require KYC and has over 300,000 dealers from over 200 countries and regions. Furthermore, the platform is eligible for FinCEN MSB accreditation in the United States (Money Services Business).