The experienced trader and chart guru Peter Brandt has made a cheeky correlation between the current Bitcoin market correction and the spread of "laser eyes" on Twitter.
In a tweet on April 18, the technical analyst linked the correction to irrational exuberance in the markets, as the meme shows:
“The likelihood of a correction in cryptos is directly related to the spread of laser eyes on Twitter. Would you like the correction to end? Get rid of your laser eyes. "
In the meme for laser eyes, first shared via crypto social media in February 2021, crypto influencers, industry leaders, and regular users changed their Twitter profile pictures to include laser eyes. The fad should mean support for Bitcoin's price spike until it hit $ 100,000.
Coincidentally, it also roughly coincided with a local high for Bitcoin prices, which hit $ 57,800 on Feb.21 before a 25% correction to hit a low of $ 43,500 a week later.
This week, Bitcoin has corrected from its recent all-time high of $ 64,600 on April 14 to current prices of $ 53,600 – a move of 17% at the time of writing.
However, Brandt is actually not that concerned about the withdrawal. Brandt's draw-down numbers bring the current correction closer to 20%, which he believes is "historically very mild". In an April 20 tweet, he said there is a strong history of bitcoin bull trends to test the 18-week moving average, which at that point was $ 46,615. This would mean a much larger correction of around 28%.
The 20.0% decline so far in Bitcoin is historically very small.
There is a strong history of $ BTC bull trends to test the 18 week MA (currently at 46,615).
Personally, I doubt that such a retest will take place, but Bitcoin has seen surprises in the past. pic.twitter.com/lyfXlgpAHK
– Peter Brandt (@PeterLBrandt), April 19, 2021
According to Brandt's data, the average correction value from the last 14 retracements is around 35%. Falling to this level would cause BTC prices to drop back to $ 42,000.
Other analysts have also pointed to the historic record as a reason not to worry. "Rekt Capital" tweeted that February's slump was three times deeper than this week's slump:
Altcoin market capitalization was down -21% in February.
After that, the altcoin market capitalization rose + 90%
Now altcoin market cap is down -7% from its all-time highs
The February dip was three times lower than this one
People also called for a new bear market # Crypto in February
– Rekt Capital (@rektcapital) April 21, 2021
On April 13, Brandt explained his theory of the "laser eyes" in an interview with crypto researcher Laura Shin and stated that over-enthusiasm in any market is always a warning signal:
"The more people put the laser eyes, the less the market gets choppy for a while and stops going straight up … when people start beating 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 rest."
At the time of writing, BTC was trading 5% at $ 53,600 in the past 24 hours.