Veteran trader and chart guru Peter Brandt has made a brutal correlation between the current Bitcoin market correction and the prevalence of ‘laser eyes’ on Twitter.
In a tweet on April 18, the technical analyst linked the correction to irrational exuberance in markets, as illustrated by the meme:
“The likelihood of a correction in cryptos is directly related to the prevalence of laser eyes on Twitter. Do you want the correction to stop? Get rid of your laser eyes. “
The laser eyes meme that initially swept crypto social media in February 2021 saw crypto influencers, industry leaders and regular users change their Twitter profile pictures to include laser eyes. The craze was to support Bitcoin’s price surge until it hit $ 100,000.
Coincidentally, it also roughly coincided with a local peak for Bitcoin prices hitting $ 57,800 on Feb. 21, before correcting 25% to $ 43,500 a week later.
In this week’s dip, Bitcoin has corrected from its recent all-time high of $ 64,600 on April 14 to current prices of $ 53,600 – a 17% move at the time of writing.
But Brandt isn’t really that concerned about the relapse. Brandt’s drawn figures bring the current correction closer to 20%, which he says is “historically very mild”. In an April 20 tweet, he said there is a strong history of Bitcoin bull trends testing the 18-week moving average which was $ 46,615 at the time. This would entail a much larger correction of about 28%.
The 20.0% draw-down in Bitcoin so far has been very mild historically.
There is a strong history of it $ BTC bull trends to test the 18 week MA (currently at 46,615).
I personally doubt such a new test 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 past 14 retracements is approximately 35%, according to Brandt’s data. A drop to this level would bring BTC prices down to USD 42,000.
Other analysts have also pointed to the historic record as a reason not to worry. Rekt Capital tweeted that February’s dip was three times deeper than this week’s dip:
In February, the Altcoin market cap increased by -21%
Then the Altcoin Market Cap was up + 90% after that
Now Altcoin’s market cap is down -7% from its all-time high
The February dip was three times deeper than this one
Also in February, people called for a new bear market#Crypto
– Rekt Capital (@rekcapital) April 21, 2021
Brandt explained his ‘laser eye’ theory in an interview with crypto researcher Laura Shin on April 13, stating that over-enthusiasm in any market is always a warning sign:
“The more people put in the laser eyes, at least you know that the market is going to get choppy for a while and won’t go straight up … When people pound their chests in public,” I own Bitcoin. I own Bitcoin. Look at me. I have laser eyes. ‘That will always be a sign that the market will at least take a rest. “
At the time of writing, BTC is trading 5% lower at $ 53,600 in the past 24 hours.