Bitcoin is showing signs of a potential downturn as chart patterns begin to resemble the conditions that led to the 2021 market collapse. Renowned trader Peter Brandt has warned that the current setup could result in a significant price correction, possibly as steep as $80,000.
For the past seven months, Bitcoin has been consolidating between $60,000 and $105,000. This is a reflection of the lateral motion that preceded the drop experienced in 2021 when Bitcoin dropped to $30,000 after ranging between $30,000 and $65000.
Brandt maintains that failed breakouts should be repeated more often, and this is indicative of distribution rather than accumulation. In the crash that occurred in 2021, Bitcoin touched the mark of 69,000 dollars, only to decline to about 15,500 dollars. In a similar situation, Bitcoin may fall free of charge to about 23600 dollars.
Source: Peter Brandt
Also Read: XRP Could Hit $357 as Expert Highlights Ripple’s Potential to Disrupt SWIFT
Although there is a favourable tone in approvals of spot ETFs and institutional demand, Bitcoin has not been able to crack the $105,000 resistance point. To reiterate, Michaël van de Poppe understands that keeping prices above the figure of 106,000 is the key to bullish momentum. A recent unsuccessful breakout resulted in the liquidations on the long side, which resulted in the price dropping to the range of 104,000-105,000.
Source: Michaël van de Poppe
Golden Cross and Mixed Market Signals Fuel Uncertainty
Analyst Ali Martinez flagged $104,124 as a critical support level. If this is breached, Bitcoin could fall toward $97,405. This pattern reflects earlier market reactions where resistance rejections resulted in swift corrections.
Some analysts still have positive hopes based on the recent Golden Cross. Trader Tardigrade pointed out that Bitcoin’s 50-day moving average has surpassed the 200-day average. This indicator has already caused a price increase of up to 125%, and the possible targets are $152,000- $229,000.
Source: Trader Tardigrade
Additionally, more than 60 companies announced Bitcoin treasury additions within a week, contributing to the growing positive sentiment in the market. However, Brandt cautions that strong fundamentals are often seen at market tops, underscoring the potential risk of a sudden correction.
Bitcoin still shows some similarities with its yearly high in 2021. The market actors are studying to see whether the break out will be sustained or there will be some sharp fall.
Also Read: Ben Zhou: Early Life and Net Worth – The Vision Behind Bybit’s Cryptocurrency Exchange
