Well known investor Peter Brandt said Bitcoin price is the most critical indicator a trader needs, not the convulsion that is technical indicators. All signs are derived from price, which makes them purely optional.
Price does not speak every day. Expecting markets to announce every jig and jag is a trap novices fall into. As I view $BTC, there have only been a dozen days in the past 8 years when the market rang bells and whistles.
— Peter Brandt (@PeterLBrandt) May 28, 2020
Bitcoin price more critical than any indicator when comes to determine another pivotal move
Brandt, who has already stated that he was optimistic about Bitcoin hitting a high of $ 50,000, was replying to another trader’s tweet and described his favorite indicator to monitor.
Brandt noted:
Price and price alone. Indicators are derivatives of price. Why study indicators when you ca study price. I trade price, so it is price I study.
— Peter Brandt (@PeterLBrandt) May 28, 2020
By focusing on the price of a particular asset, Brandt will be able to filter out all the noise. It is important to observe where the price goes because it can act as a more reliable signal than any particular indicator.
Author of The Diary of a Professional Commodity Trader said that an asset’s actual price is what a trader needs to determine the next pivotal move. He believes that there is little need to study so many technical and complex indicators. But he also stated that he is not mainly against derivative indicators, just their overuse in charts.
The trader also ridiculed an extremely convoluted Bitcoin price chart with Fibonacci circles, which predicted that the price could crash to $ 1,800 in the second half of 2020.
It is actually hilarious that people post charts like this and expect others to take their predictions seriously
— Peter Brandt (@PeterLBrandt) May 6, 2020
In early May of this year, Brandt tweeted about a Bitcoin price chart that he felt no one could take seriously. The chart in question holds a bearish view on Bitcoin’s post-halving performance but has so many technical indicators as to make it almost illegible.
But price doesn’t speak all the time
Despite the importance of observing Bitcoin’s price action, staring at the chart every day will be hard to give traders any hints about the next move.
Despite his view that price is the most important indicator, Brandt says it would admittedly be naïve always to expect the price to tell you about market direction.
According to him, Bitcoin’s price won’t speak every day, and effectively only the novice traders who watch market trends with an expectation to anticipate every jig and jag.
The commodity trading guru points out that over the last eight years, it was only a dozen days or thereabout when the market rang bells and whistles.
Bitcoin’s 7-day price chart
Bitcoin crashed by over 50% in March but went on to rally over 150% as it rebounded to prices above $ 10k following the unprecedented drop.
The pioneer of all cryptocurrency celebrated its third halving earlier this month and has since fluctuated between a high of $ 10,100 and a recent low of $ 8,650.
Read more:
- This Is Four Reasons Why Bitcoin Is Repared To The Moon
- Revolut Stated: In The Second Half Of March, UK Crypto Traders Bought Nearly Two-Thirds Less Crypto Per Week