Here’s a silver lining for Bitcoin to potentially retest $20,000

Alex Dovbnya

Peter Brandt expects Bitcoin to see a relief rally if it eventually retests $20,000

Bitcoin has once again slipped below the $21,000 level, meaning a retest of its 2017 high remains very likely.

Picture by @PeterLBrandt

In a recent tweet, veteran chartist Peter Brandt says he expects the flagship cryptocurrency to see a relief rally if the aforementioned scenario occurs. However, he also warned traders that any sort of recovery would be short-lived.

The crypto went into relief rally mode with stocks on Wednesday after US Federal Reserve Chairman Jerome Powell adopted a more subdued tone during his press conference.

Yesterday, as U.Today reported, the Fed announced its biggest rate hike in 28 years – by 75 basis points – after a high-stakes policy meeting. The central bank is likely to repeat this move next month to rein in spiraling inflation.

US stocks and crypto both erased their post-Fed gains in the blink of an eye. All three major stock indices are currently trading in the red, with the Dow Jones slipping below 30,000 for the first time since January 2021.

Recession fears are now front and center, with the Fed appearing determined to lower inflation even if it means slowing economic growth.

Even though Bitcoin is currently selling, many analysts still do not view it as a good buying opportunity as they believe much lower prices are very likely.

As reported by U.Today, Brandt himself predicts that the world’s largest cryptocurrency could bottom out at $12,000.

Doubleline CEO Jeffrey Gundlach believes that Bitcoin could potentially fall to $10,000.

Meanwhile, Guggenheim’s Scott Minerd believes that Bitcoin could dip back into four-digit territory before ending the current bear cycle.

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