Bitcoin price fell from $60,611 to $58,900 due to high inflation data. This decline occurred due to serious selling pressure. Bitcoin returned to $60,600 levels after the news, but famous trader Peter Brandt predicts a 75% chance of correction here. Investors are looking with hope to China’s $283 billion support package, which is expected to be announced this weekend.
Peter Brandt reminded the Bitcoin community of an important historical trend, emphasizing the concept of “market analogs” in his post on the X platform. Brandt noted that 30 weeks had passed since Bitcoin reached its all-time high (ATH). According to him, when the BTC price failed to establish a new ATH during this period, there was a significant drop of over 75% in previous examples. Therefore, there is a possibility that a similar situation will repeat itself.
“It always amuses people who confuse market observation with market opinion. Drivers who can’t think both ways end up in accidents,” says Peter Brandt.
Brandt has been criticized by some Bitcoin enthusiasts who claim that his 2023 prediction was wrong. However, Brandt responded to these comments by emphasizing the difference between market observation and market opinion.
The Impact of China’s $283 Billion Support Package
According to the latest report from Bloomberg, China is preparing a new $283 billion stimulus package this weekend to boost its economy and boost consumer confidence. Analysts expect the Chinese finance minister to announce the support at a press conference on Saturday. Chinese stocks have lost momentum after a strong rally following the holiday week, raising expectations for fiscal support.
Pushan Dutt, Professor of Economics at INSEAD, said that the support will determine the government’s economic direction, adding, “The long-term nature of the support package and its targeting of households is more important than its size.”
While Chinese stock markets experienced a rally in October, Bitcoin price did not meet expectations. It is seen that the support measures have drawn liquidity from the crypto market and this liquidity is directed to the Chinese market. Therefore, it is thought that the upcoming Chinese support package may not be very positive for Bitcoin and altcoins.