Peter Brandt Predicts a Decline in Bitcoin (BTC) Prices
Veteran trader Peter Brandt has a bearish stance on Bitcoin futures as market indicators suggest a possible price drop, eyeing $40,000 amidst fluctuating market conditions.
Peter Brandt, a trader with extensive experience, has adopted a short position in Bitcoin futures due to market indicators suggesting a potential decline.
Despite being a long-term Bitcoin holder, Brandt’s current trading strategy reflects bearish signals in the market.
Broadening Pattern Suggests Risk
On the daily chart, Brandt identified a broadening pattern, also known as a megaphone pattern, indicating five distinct swings, with the latest peak near $126,000. Following this rise, Bitcoin has fluctuated between $106,000 and $116,000 before dropping below this lower limit.
Bitcoin Chart
(Source: Peter Brandt/X)
Currently, the price is around $109,500, having declined by 2% in the last day and consistently over the past week, reinforcing Brandt’s pessimistic outlook. If this trend continues, watchers should pay attention to potential price milestones at $97,000 and $84,721.
Order Book Indicates Pressure
Market data from Coinglass reveals that most order book liquidity is positioned above the current price level, particularly within the $113,000 to $116,000 range, where substantial limit orders and stop-losses exist. Rekt Fencer remarked:
“All $BTC liquidity is sitting above the current price. Just one pump could wipe out the shorts.”
A swift upward movement could lead to short liquidations, resulting in a rapid price recovery. Conversely, there appear to be fewer substantial orders below the current trading levels, potentially weakening support.
Interest from Traders Amid Rate Cuts
The recent 0.25% rate cut by the Federal Reserve introduced volatility into the markets. In response to this policy shift, Bitcoin briefly dipped below $108,000.
As Bitcoin approaches a critical trendline, historical data suggests that significant pullbacks usually follow these upper boundary hits, leading to losses between 73% to 84%.
Reiterating concerns, Rekt Fencer chimed in:
“Every time Bitcoin rejects this line, it drops 70%. Are you prepped for $BTC at $40,000?”
Such a move would align with the lower boundary of the multi-year trend channel.
For detailed analysis and further updates, refer to the full articles linked above.
