The crypto space and market have continued to record diverse changes and sentiments after the spot Bitcoin ETF approval. Many prominent personalities and market participants have started readjusting their ideas and tactics in the field.
A prominent crypto trader, Peter Brandt, took the X platform to reevaluate his position regarding Ethereum. His sudden adjustment followed a consideration of the market implications of post-BTC ETF approval.
Brandt’s Past Predictions Of Rising Wedge Formation For Ethereum
Brandt’s post revealed he has reconsidered his stance on Ethereum’s outlook after the coin reclaimed the $2,600 region. He mentioned that his slogan “strong opinions, weakly held” will remain his approach in the market.
“Strong opinions, weakly held” is my trading motto
I have long held to the concept of “buy the rumor, sell the news” – and that the announcement of an approved ETF in $BTC could bring forth a local blow off top in crypto
I was wrong …… pic.twitter.com/QwzOm24FhM
— Peter Brandt (@PeterLBrandt) January 11, 2024
The veteran analyst believed that market participants should remain rigid in their approaches. Instead, changes in the market should prompt them to initiate adaptive trading strategies. Brandt initially revealed a rising wedge formation in Ethereum.
He predicted that ETH’s price could plummet to $650 as the market changes grow stiffer. Notably, a rising wedge indicates two converging trendlines for a digital asset. While the first line would connect higher highs, the second link higher lows. Such a situation reflects a possible bearish reversal in the market.
Also, a rising wedge means that a token’s trading range will thin out as the asset continues to make higher highs and lows. According to Brandt, Ethereum presented this market outlook even while some market experts had bullish sentiments about ETH’s price trend.
A Paradigm Shift For Ethereum Outlook
On January 10, the US Securities and Exchange Commission (SEC) approved multiple spot Bitcoin ETFs. The move triggered a bullish pressure in the overall crypto market, causing Ethereum’s price to hit the $2,600 region. Brandt had readjusted his views on the potential trend for Ethereum.
The analyst had owned up to the errors in his previous post. According to Brandt’s latest assertions, Ethereum is forming a running wedge. The running wedge sequence focuses on a corrective stage without a complete recap of the previous trend.
However, it just continues the flow at a slower pace. Brandt made a paradigm shift as he considered the Darvas box tool, a measure that highlights price ranges and picks out potential breakout indicators.
“Strong opinions, weakly held” is my trading motto
I have long held to the concept of “buy the rumor, sell the news” – and that the announcement of an approved ETF in $BTC could bring forth a local blow off top in crypto
I was wrong …… pic.twitter.com/QwzOm24FhM
— Peter Brandt (@PeterLBrandt) January 11, 2024
Further, Brandt analyzed the “buy the rumor, sell the news” approach that scales more with trading circles. Notably, this sentiment prompts traders to take action based on speculations and hype of an upcoming event. However, such people would see market reversals once the realities of the news come to light.
The analyst expected such a trend, as well as an overboard of prices in the market post-Bitcoin ETF approval. This implies a possible massive rise with a corresponding significant correction afterward. This was seen in Bitcoin reaching $48,969 on January 11 but now trades at $45,520 on January 12 after a 6.40% drop.
Conversely, the market trend for ETH is not according to such an expectation after spot Bitcoin ETF approval. Instead, ETH hit a daily high of $2,689 the previous day and has gained 1.28% to hover around $2,710 on January 12.
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