Peter Brandt Calls Bitcoin’s Slide to $25K – What Happened?

Bitcoin has dipped below $90,000 after a few days above it, eroding the chances of going higher from that level. To make matters worse, renowned trader Peter Brandt sees the coin sliding to $25,000 following the appearance of a dangerous pattern.

According to Brandt, Bitcoin has undergone parabolic advances in previous bull cycles. This is a rapid and unsustainable rise in the price of the asset during bull markets typically driven by speculation and emotions. 

He notes that the violation of such parabolic advances have led to about an 80% decline in the asset price, and the current parabola has also been violated with a potential drop to around $25,000 which is 20% of the new all-time high.

Bitcoin’s Weakness Causes uncertainty

The crypto market has been weak over the last few months, and Bitcoin has been at the forefront of it. The biggest crypto asset by market cap has since failed to break out of a downward trend and continues to face uncertainties below key levels. It failed to hold the $90,000 level today and has retested the $88,000 support once again. 

It is this lingering weakness that has probably resulted in the violation of the parabola, leading to Brandt’s bearish prediction of a potential 80% crash. This is not the first time he has made such a bearish Bitcoin prediction though. 

Early this month, he gave an analysis that implied that bitcoin could crash to around $40,000 in the midst of Bitcoin’s struggle. Although he has also suggested that price can hit $250,000, he still tied it to the condition that the price crashes to $50,000 first. As this condition hasn’t been met, Brandt is now predicting a crash to $25,000 before another rally.

Another analyst Michaël van de Poppe seems to agree with the veteran trader this time. He said Bitcoin rising towards $92,000 and $94,000 depends on its ability to hold the $90,000 price which is already lost, in which case he said the price could go down “substantially”. As he did not give any price target, Brandt’s $25,000 may be on the table.

Bitcoin Hanging in the Balance

While Bitcoin has lost the $90,000 price level and may be at risk of going lower according to Poppe, all hope may not be lost. The coin has succeeded in bouncing off $88,000 support which has been critical. With that bounce, other analysts see a potential to rise higher which depends on the coin holding above $88,200 by the close of the day.

Ultimately, Bitcoin stands at a critical stage with the potential to go higher if it holds the above this key level. Failing to hold may open the door to Brandt’s prediction coming true, which investors wouldn’t like.

More Must-Reads:

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