In looking at today’s resurgence of key cryptocurrencies and their gains over the past week, DailyHodl is referencing some of the opinions of Peter Brandt.
Brandt is known as a sort of clairvoyant prognosticator of cryptocurrency stocks – this past January, he tweeted a prediction of Bitcoin’s current 80% decline in value which had so many investors scratching their heads.
General TA rule – violation of parabolic advance leads to 80%+ decline in value,” Brandt tweeted. “If general rule is followed, BTC should retrace to less than 4000.”
Lest bitcoin enthusiasts should start singing Taylor Swift songs at him, Brandt added the following disclaimer:
“Note: this tweet does not make me a hater.”
So what does Brandt have to say now that Bitcoin has pushed up above $4,000?
“Peter Brandt told Yahoo! Finance the price of Bitcoin could hit $4,600 before retesting the key psychological level of $3,000 early next year,” Daily Hodl staff wrote within the past 24 hours. “Brandt says this year’s dramatic decline was predictable from a technical perspective. But at this point, he says anything is possible in 2019, from a drop to $1,200 to a bull run that sees Bitcoin returning to its all-time highs.”
So what we have is a man with a track record of correctly predicting cryptocurrency losses telling us that now there’s no way to predict where cryptocurrencies are going to go next year.
Let’s pivot and look at one concrete indicator that’s going to direct trading activity short-term.
Ethereum-based giant Consensys has been hinting that layoffs are in the making. Last week we reported on a plan to lay off 13% of Consensys employees, which was in itself some pretty bad news for ETH holders.
Today, reports are pushing that number up to over half – Cointelegraph reports 60% of Consensys employees will get the axe.
The story clarifies that Consensys will “no longer be an incubator” and that it will kick many of the startups it has been working with out of the nest.
Joe Lubick says the company will operate more as a traditional investor and that Consensys has to tighten its belt to “retain, and in some cases regain, the lean and gritty startup mindset that made us who we are.”
All of this is extremely hair-raising for Ethereum backers. Consensys is a major operation that impacts cryptocurrency development, and when you see these sorts of things happening, you should factor them into your trading regimen.
Traders could do worse than pursuing some smart profit-taking for the holidays and wading back into the fray in January or February when things have calmed down a bit. Or, if you have to take a slight loss, that’s also an option. In general, it’s best to think with the data and not be overcome by emotions. Christmastime can be a good reset for traders who are too white-knuckled around where each of these coin values is going day to day.