Veteran trader and charting guru Peter Brandt has established a blatant 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 the markets, exemplified by the meme :
“The chances of a correction in the cryptocurrency market are directly related to the prevalence of laser eyes on Twitter. Do you want the correction to end? Get rid of your laser eyes. ”
64% of American adults are interested in cryptocurrencies, according to a new survey
The laser eyes meme that initially swept through the crypto social media space in February 2021 caused crypto influencers, industry leaders, and regular users to change their Twitter profile photos to include laser eyes. The fashion was to represent support for the rise in the price of Bitcoin until it reached $ 100,000 .
Coincidentally, it also coincided with a local high for Bitcoin prices that hit $ 57,800 on Feb 21 , before correcting 25% to bottom at $ 43,500 a week later.
In this week’s slide, 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.
BitGo expands its cryptocurrency insurance to cover more than $ 700 million
However, Brandt is not so concerned about the pushback . Brandt’s figures put the current correction at 20%, which he says is “historically very mild.” In an April 20 tweet he said that there is a strong Bitcoin bull trend story to test the 18-week moving average that was at $ 46,615 at the time. This would be a much larger correction of around 28% .
The average magnitude of the correction for the last 14 pullbacks is around 35%, according to Brandt’s data . A drop to this level would cause BTC prices to fall back to $ 42,000.
Other analysts have also pointed to the historical record as a reason not to worry . ‘Rekt Capital’ tweeted that February’s drop was three times deeper than this week:
Early Tesla Investor Baillie Gifford Invests $ 100 Million in Blockchain.com
Brandt explained his “laser eyes” theory in an interview with cryptocurrency researcher Laura Shin on April 13, stating that over-enthusiasm in any market is always a red flag :
“The more people laser-eye, you know that at least the market is going to shake for a while and stop going straight up … When people start pounding their chests in public, ‘I have Bitcoin holdings. I have Bitcoin stakes. Look at me. I have laser eyes. “That is always going to be a sign that the market is going to take at least a break.”