Veteran trader and graphics guru Peter Brandt has made a naughty correlation between the current correction in the Bitcoin market and the prevalence of “laser eyes” on Twitter.
One tweet on April 18, the technical analyst linked the correction to irrational market exuberance, as exemplified by memes:
“The chances of a correction in cryptos is directly related to the prevalence of laser eyes on Twitter. Do you want the correction to end? Get rid of your laser eyes. ”
The laser eyes meme that originally appeared on crypto-social media in February 2021 saw crypto-influencers, industry leaders and regular users change their Twitter profile images to include laser eyes. The fashion was to signify support for raising the price of Bitcoin until it reached $ 100,000.
Coincidentally, it also roughly coincided with a local top for Bitcoin prices, which reached $ 57,800 on February 21, before correcting 25% to $ 43,500 a week later.
In this week’s decline, Bitcoin has corrected from its last historical record of $ 64,600 on April 14 to current prices of $ 53,600 – a move of 17% at the time of writing.
However, Brandt is not so concerned about retirement. Brandt’s pull figures put the current correction closer to 20%, which he says is “very easy historically.” In an April 20 tweet, he said there was a strong history of Bull Bitcoin trends to test the 18-week moving average, which was $ 46,615 at the time. This would mean a much higher correction, of about 28%.
The 20.0% reduction in Bitcoin so far is very easy from a historical point of view.
There is a strong history of $ BTC bull trends to test 18-week MA (currently at 46,615).
Personally, I doubt that such a revaluation will take place, but Bitcoin has a history of surprises. pic.twitter.com/lyfXlgpAHK– Peter Brandt (@PeterLBrandt) April 19, 2021
The average correction size of the last 14 retractions is about 35%, according to Brandt data. A decrease at this level would lead to a decrease in BTC prices to USD 42,000.
Other analysts have also pointed to historical evidence as a reason not to worry. Rekt Capital wrote on Twitter that the fall in February was three times deeper than the fall this week:
In February, Altcoin market capital returned -21%
Then, the Altcoin market leader gathered + 90% after that
Now, Altcoin market capital has fallen by -7% from its all-time highs
The February sinking was three times deeper than this
People also asked for a new bear market in February#Crypto
– Rekt Capital (@rektcapital) April 21, 2021
Brandt explained his “laser eye” theory in an interview with crypto researcher Laura Shin on April 13, saying that over-enthusiasm in any market is always a warning sign:
“With as many people putting on laser eyes, you know that at least the market will get hectic for a while and it won’t go straight up … When people start beating their chests in public,” I own Bitcoin. I own Bitcoin. Look at me. I have laser eyes. This will always be a sign that the market will at least rest. ”
At the time of writing, BTC is trading at 5% in the last 24 hours, at $ 53,600.