Legendary trader Peter Brandt observes that we might have seen this Bitcoin movie before despite having the cryptocurrency as its largest single position.
In a recent tweet, veteran commodity trader Peter Brandt mentions that Bitcoin is his “largest single position.”
Meanwhile, silver, whose price has reached a six-month high because of the Reddit-inspired “short squeeze” hype, is the chartist’s second-largest holding.
A chilling déjà vu observation
Despite personally betting big on Bitcoin, Brandt also made a cautious “observation” about potential déjà vu in the making.
He has compared eerily similar setups from 2018 and 2021, but the trader also warned his followers that the tweet didn’t reflect his position.
If you think my opinions are the same as my positions – you are wrong. It’s an observation — nothing more, nothing less.
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Brandt’s legendary call
After Bitcoin hit a new all-time high of $19,727 on Dec. 17, 2017, it corrected 43 percent in less than a week. In spite of a dead cat bounce to $17,272 on Jan. 5, 2018, the cryptocurrency collapsed another 47 percent in the following 11 days to as low as $9,138.
On Jan. 22, 2018, Brandt famously tweeted about Bitcoin violating its parabolic advance, calling for an 80 percent correction with incredible accuracy.
In early February 2018, Bitcoin slipped below $6,000. After several months of back-and-forth, the flagship cryptocurrency ended up slipping to just $3,010 on Dec. 15, 2018, the darkest day of crypto winter.
Is 2021 any different?
Fast-forward to 2021, Bitcoin corrected over 28 percent in three days after hitting its current lifetime peak of $42,000 on Jan. 8. This was followed by a similar correction that took about eight days to play out in late January.
The “Elon Musk pump” that sent Bitcoin to nearly $39,000 on Jan. 29 was followed by a brutal rejection.
While it might look like early 2018 from a technical standpoint, the industry is definitely in a different place now, with the biggest hedge fund managers and major public companies finally embracing Bitcoin.