Brandt Warns of Significant Bitcoin (BTC) Downturn, Sees No Endless Upswing

Brandt Warns of Significant Bitcoin (BTC) Downturn, Sees No Endless Upswing

Veteran commodities trader Peter Brandt has raised concerns about Bitcoin's future, predicting a potential drop in price and highlighting technological risks. His bearish outlook includes a significant correction and suggests the leading cryptocurrency may not continue to rise indefinitely.

Key Takeaways

Peter Brandt predicts Bitcoin could fall to the $58,000-$62,000 range, indicating a market correction of nearly 40%.
Current price behaviors suggest a bearish continuation, with the $60,000 mark in focus.
Bitcoin is testing the lower boundary of a rising parallel channel, and a breakdown could lead to further declines.
Brandt emphasizes the risks of technological obsolescence and the impact of potential advancements in quantum computing on Bitcoin's future.

Brandt’s Bearish Predictions

Veteran commodities trader Peter Brandt has issued a stark warning regarding Bitcoin, the world’s leading cryptocurrency by market capitalization. According to Brandt, Bitcoin may be facing a dual threat: a short-term price plunge to the $58,000-$62,000 range and a longer-term risk due to potential technological obsolescence.

Brandt's prediction indicates an alarming potential market correction of approximately 40%. "I think it is going to $58k to $62k," Brandt stated.

The chart shared by Brandt suggests that the phase of price correction from recent highs is still ongoing, hinting at a bearish continuation that brings the $60,000 area into sharp focus. Notably, a broadening top pattern, often referred to as a megaphone pattern, is prominent in the analysis. This pattern is characterized by rising highs and falling lows, marked by points 1 through 5.

The breakdown occurred at point B when there was a decisive loss of support from the lower trendline. Following this dip, Bitcoin rebounded and reached point P at approximately $102,233, representing a classic "bearish retest."

Source:

Since encountering resistance at point P, Bitcoin has been moving within a narrow, upward-sloping parallel channel. Currently, it is testing the lower boundary of this channel around $92,468. Should the price break downward from this channel, it would confirm the next leg lower in Bitcoin's trajectory.

A decline from this current channel could target around $73,786, followed by a deeper extension down to approximately $63,254. Ultimately, the chart's figures suggest a downside target around $58,840.

"If it doesn't reach that point, I will NOT be ashamed... I am wrong 50% of the time. It doesn’t faze me to be incorrect," Brandt remarked.

Challenging the "Bitcoin Forever" Narrative

Brandt also criticized the prevailing belief that Bitcoin will continue to rise indefinitely, arguing this notion suffers from a "major flaw" stemming from assumptions about technological progress.

"It presupposes that nothing better will be developed or invented. With the impending arrival of quantum computing, such assumptions can be quite perilous," Brandt stated.

The concerns surrounding the "quantum threat" have been a persistent topic in discussions about cryptography, and Brandt insists that these risks should not be overlooked.