Peter Brandt Dismisses His Own Dogecoin Prediction
The most recent prediction made by Peter Brandt about Dogecoin breaking the prolonged downturn has received a clarification by the trader himself, who warned his subscribers that the end of a downtrend does not necessarily mean the beginning of an uptrend.
Brandt highlighted in one of his recent tweets the breakout of the bear channel, which made some people believe in the potential acceleration of the rally on Dogecoin that is showing a 100% return in the last four days, making it the most volatile price spike for the memecoin in the last few months.
A common mistake made by novice and wanna-be traders is assuming that an end to a bear phase of a market is automatically a signal that a bull market has begun. This assumption is most often wrong — Peter Brandt (@PeterLBrandt) October 30, 2022
However, Brandt rushed to dismiss some euphoric thoughts of DOGE investors, who believed in the continuation of the Musk-fueled rally by saying that a breakout might not lead to an uptrend.
The legendary trader most likely refers to consolidation after a volatile breakout. Whenever an asset shows explosive performance similar to DOGE's, they might not enter a bullmarket and proceed at the same pace but rather enter a stable consolidation or even reverse back to pre-pump price levels.
Brandt also noted that thinking that a downtrend breakout is a sign of a beginning uptrend is a common mistake among novice and "wannabe" traders. "Most often," the aforementioned assumption is wrong.
Historically, a sudden breakthrough on an asset that did not show any signs of a reversal led to disappointment for investors who opened their positions during or after a breakout. Accumulation and a stable volume increase are usually the main signs of a healthy trend change as they become a foundation for a long-term rally.
At press time, Dogecoin is trading at $0.116 and losing 1.1% from its value in the last 24 hours.Source