Peter Brandt Warns of Bitcoin Price Drop

Bearish Signals Emerge

Veteran trader Peter Brandt has raised an alert regarding a potential Bitcoin price drop. Currently, Bitcoin (BTC) is trading about 10% below its all-time high, achieved three months ago. Brandt shared his concerns with his 700k followers on the social media platform X, indicating that BTC is displaying a bearish chart pattern on the daily timeframe.

Analyzing the Pattern

According to Brandt, Bitcoin is following a “Bump, Hump, Slump, Bump, Dump” pattern. This pattern suggests initial bullish momentum (Bump), followed by consolidation (Hump), then a decline (Slump). Another brief increase (Bump) is predicted before a significant drop (Dump). Brandt’s analysis points to $65,060 as the nearest support level and $60,775 as the next. If Bitcoin breaks through these levels, he suggests a further decline to $48,000 is possible.

Decreasing Returns and Market Cycles

In addition to the chart pattern, Brandt notes that Bitcoin’s rates of return have been decreasing, which might indicate that BTC has reached the peak of the current cycle. He compares past bull market cycles, showing a significant decrease in returns:

• 2011-2013: 82% loss of the 2010-2011 move’s power
• 2015-2017: 79% loss of the 2011-2013 move’s power
• 2018-2021: 82% loss of the 2015-2017 move’s power

If this trend continues, the 2022-2024 advance might already be complete. We have already discussed that 3 factors are combining for a bearish short term which you can check out here

Currently, Bitcoin is trading at $66,110. Brandt’s warning of a potential Bitcoin price drop has caused concern among investors, as many closely monitor these key support levels.