Bitcoin traded relatively flat on Wednesday, recovering from a steep drop earlier in the week.
Earlier in the week, the leading cryptocurrency climbed to approximately $93,810, bouncing back from a low near $84,500. This rebound comes amid heightened volatility, with market sentiment still hovering in the “fear” zone at 28.
Despite this short-term recovery, veteran market analyst Peter Brandt issued a warning on Monday.
In a tweet, Brandt suggested that Bitcoin could experience a correction of up to 75% before resuming a long-term upward trajectory. The market veteran cited historical patterns observed during previous Bitcoin bull cycles as the basis for his forecast.
Brandt highlighted a recurring structure he calls the “dominant parabolic advance,” a trendline visible on weekly charts that typically accompanies Bitcoin bull markets. According to his analysis, every prior bull cycle since 2009 has followed a similar trajectory. Once the cryptocurrency broke below this trendline, it historically experienced a severe correction, often exceeding 75%.
For context, Brandt pointed to previous crashes, noting that following the 2011 rally, Bitcoin plummeted 86%, while the 2013 bull run saw an 80% decline. The 2017 peak led to a 77% drop, and in 2021, the cryptocurrency corrected 74.2% after breaking the parabolic advance.
“There have been five major bull market cycles in BTC since inception. In all previous cycles, the violation of the dominant parabolic advance has been followed by a 75%-plus correction — NO EXCEPTIONS!! You better have a great reason to bet against this pattern,” Brandt remarked, emphasizing the trend’s historical reliability.
Notably, the current bull market appears to mirror this historical pattern. Bitcoin has maintained a steady advance above the parabolic line since recovering from the FTX crash in late 2022. However, recent market turbulence pushed the price below this trendline, raising concerns of a significant correction. If Brandt’s projection holds, a 75% decline from the recent $103,000 peak could see Bitcoin dropping to around $25,750.
Despite the bearish signals, not all analysts share Brandt’s cautious outlook. Crypto analyst Michael van de Poppe described the ongoing recovery as a positive sign, noting that Bitcoin needs to consolidate above $92,000 to continue its rally.
According to the analyst, if it breaks this level, the cryptocurrency could test the $100,000 mark and potentially reach a new all-time high.
Other market factors also influence the current sentiment. The end of the Federal Reserve’s quantitative easing program, coupled with anticipated interest rate cuts, has injected liquidity into the market.
Meanwhile, support from major U.S. financial institutions and a strong realized price level for highly active wallets has helped stabilize short-term price dynamics.
At press time, BTC was trading at $90,543, down 2.24% in the past 24 hours.
Source: https://zycrypto.com/veteran-analyst-peter-brandt-warns-bitcoin-could-plunge-75-before-larger-surge/
