Bitcoin could soon approach its previous all-time high of $125,100, although a sharp correction may precede this surge, according to insights from Peter Brandt, a seasoned trader.

“Either a huge shakeout, which would be confirmed by an ATH quickly within the next week or so,” he noted, though he also admitted there could be a much gloomier scenario.
Translation: “Eithe a massive selloff followed by a rapid ascent to ATH next week, or a bearish move toward lower prices could happen.”
“Or a violation of the parabola, which every time in the past has produced a 75% price decline. I think the day of the 80% decline is over, but perhaps back to $50-60,000 and test the lower skin of the banana.”

Traders Need to Factor in Long-Term Risks

Last Friday’s crypto market collapse followed an announcement from former US President Donald Trump about a 100% tariff on Chinese goods, resulting in over $19 billion in market liquidations.

After a tumble from approximately $121,000 down to $102,000, Bitcoin currently finds itself roughly around $112,400, as reported by CoinMarketCap.

“It serves as a cautionary tale on the risks of leverage; even a leverage ratio above 1.5x is perilous,” expressed Charles Edwards, founder of Capriole Investments.

“You must always weigh the long-term risks,” he added, emphasizing that the recent volatility is likely temporary and predicting a general upward trend in the weeks ahead.

Bitcoin has declined by 7.51% over the past seven days. Source: CoinMarketCap

Other analysts remain positive, highlighting macroeconomic indicators as signs that new capital could flow into the cryptocurrency realm soon.

“Buy Everything,” Says BitMEX Co-founder Arthur Hayes

In a Tuesday post on X, Arthur Hayes, co-founder of BitMEX, suggested that a buying opportunity is emerging within the crypto space following signals from US Federal Reserve Chair Jerome Powell indicating an end to quantitative tightening.

“Back up the … truck and buy everything,” Hayes asserted. Translation: “Prepare to invest massively.”

Quantitative easing tends to favor crypto by incentivizing banks to lend more, subsequently lowering borrowing costs for consumers and businesses through reduced interest rates.

Related: Bitcoin Price Reclaims Key Level As Traders Say $150K BTC Still in Play

Pav Hundal, lead analyst at Swyftx, remarked that “Today’s economic indicators are currently the primary narrative for Bitcoin.” He pointed out that inflation is facing a dual setback from falling oil prices and decreasing demand, noting that the US labor market shows signs of stress, with inflation reaching 2.90% in August – the highest since January.

“The Fed aims for full employment, and it’s inevitable we’re looking at further rate cuts this month. This is a fortunate position for Bitcoin,” he commented.

Meanwhile, macroeconomist Lyn Alden shared on a podcast that she anticipates the upcoming quarter to be “favorable” for Bitcoin.

Magazine Review: The Devil Takes Bitcoin: A Wild History of Mt. Gox and Silk Road.