Bitcoin’s price chart is beginning to show parallels with the soybean market from the 1970s, which experienced a significant spike followed by a steep decline of 50% due to global supply exceeding demand, warns trader Peter Brandt.

However, some Bitcoin analysts remain optimistic, suggesting that the current charts may indicate an upward trend.

“Bitcoin is developing a rare broadening top in its charts, a signal often associated with market peaks,” Brandt explained to Cointelegraph.

In the 1970s, soybeans formed a similar pattern before experiencing a major drop in value.

Bitcoin price trends Bitcoin has decreased by 5.32% in the last 30 days. Source: CoinMarketCap

Brandt warned that if history were to repeat itself, it would adversely impact Bitcoin as well as Michael Saylor’s company Strategy, which has seen its stock price slump by 10.13% in the past month due to the pressures from corporate Bitcoin holdings.

Potential Decline Ahead

Brandt cautioned that the anticipated surge in Bitcoin prices may not materialize, predicting instead that it could dip to bear market levels as low as $60,000.

Yet, other experts maintain that Bitcoin still has one significant rally ahead, projecting a potential rise to $250,000 based on historical performance, considering the fourth quarter typically brings an average return of 78.49%.

Additionally, October is generally regarded as a strong month for Bitcoin.

Historic Trends Q4 has historically been the strongest period for crypto. Source: CoinGlass

Despite these predictions, market sentiment has dipped following a tariff scare from US President Donald Trump, leading to a more cautious outlook among analysts.

Market Sentiment

In what is typically considered a positive month for cryptocurrency, the Crypto Fear & Greed Index recently registered an “Extreme Fear” level of 25.

Related: Bitcoin ‘bull run is over’ traders fear, predicting a potential 50% price drop

Traders have expressed concerns about Bitcoin needing to maintain its recent higher lows for a recovery attempt.

Meanwhile, not every analyst shares a bearish outlook. David Hernandez from 21Shares mentioned the possibility of a rebound should economic indicators, like the US Consumer Price Index, show signs of improvement.

“Bitcoin is coiled and ready to spring upward.”
Translation: Bitcoin is positioned for potential upward movement.

Michaël van de Poppe, founder of MN Trading Capital, indicated that gold’s recent price drop could signal a shift towards Bitcoin and altcoins.