Legendary trader Peter Brandt has issued a bold warning: Bitcoin could plunge by 80% from its peak. This striking prediction challenges the bullish trend that has driven the crypto market. Unpack how this scenario could reshape your investment strategies.
Peter Brandt, a legendary commodities trader and recognized technical analyst in the crypto universe, has just released a forecast that’s shaking the markets. According to him, Bitcoin could undergo a massive 80% correction, bringing its price down to around $25,000. This projection comes after the cryptocurrency reached all-time highs beyond $100,000, making this potential drop all the more dramatic.
Brandt’s warning isn’t based on mere speculation. The trader relies on decades of experience in chart analysis and a deep understanding of market cycles. He has notably identified the breakdown of Bitcoin’s parabolic structure, a technical signal that has historically preceded major corrections. This chart pattern suggests that the euphoria of the bull market is coming to an end and a capitulation phase could be beginning.
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Peter Brandt’s analysis focuses on the breakdown of the parabolic trajectory that characterized Bitcoin’s rally. In technical analysis, a bullish parabola represents a phase of exponential price acceleration, often fueled by FOMO and excessive leverage. When this structure breaks, the corrections that follow are typically proportional to the amplitude of the preceding rally.
The key support levels Brandt is monitoring are well below current prices. The $25,000 scenario would imply a return to the 2023 consolidation zones, erasing nearly two years of gains. This projection aligns with the typical retracements observed during previous Bitcoin bear cycles, where corrections of 70 to 85% have systematically followed major bull runs.
Trading volume and market sentiment confirm Brandt’s concerns. Speculative activity has reached extreme levels, while leveraged positions have multiplied on exchange platforms. These conditions create fertile ground for cascading liquidations, a phenomenon that could accelerate the descent toward the $25,000 level.
Moreover, the RHODL indicator, which tracks the influx of new capital, indicates that new investors are becoming increasingly scarce. Another sign that the trend is losing momentum.
Peter Brandt’s track record of predictions reinforces the credibility of his analysis. The trader has correctly anticipated several major reversals in the past, both in traditional and crypto markets. His ability to identify market excesses and fragile technical structures makes him a voice worth listening to, even though no prediction is ever guaranteed in the highly volatile environment of cryptocurrencies.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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