Peter Brandt, a veteran trader, warns that Bitcoin’s price chart resembles the soybean market from 50 years ago, which experienced a peak followed by a 50% drop as global supply surpassed demand.
Conversely, some Bitcoin (BTC) analysts believe the charts indicate potential for further gains.
“Bitcoin is creating a rare broadening top on the charts, a pattern notorious for signaling tops,” Brandt informed Cointelegraph.
“In the 1970s, Soybeans formed such a top and subsequently lost 50% of their value,” Brandt noted.
Brandt cautioned that if history repeats, the fallout may extend beyond Bitcoin, potentially putting Michael Saylor’s company Strategy “underwater.”
Strategy’s (MSTR) stock has declined 10.13% over the past 30 days as corporate Bitcoin treasuries grapple with pressure from a significant drop in net asset values (NAV).
Peter Brandt suggests Bitcoin’s ‘final thrust’ may not materialize
Brandt further warned that the anticipated Bitcoin pump might never occur, predicting that Bitcoin could dip to bear levels as low as $60,000.
However, most analysts believe Bitcoin has one significant rally left in this cycle, which could propel its price to as high as $250,000, according to industry figures like BitMEX co-founder Arthur Hayes.
The fourth quarter is historically Bitcoin’s strongest quarter, averaging a return of 78.49%, according to CoinGlass.
October is also regarded as a robust month for Bitcoin.
Nonetheless, sentiment has shifted to a bearish trend following US President Donald Trump’s recent tariff concerns, which prompted a broader market downturn after record highs, making analysts more cautious.
Crypto sentiment drops to “Extreme Fear”
Despite it being a season typically favorable for crypto, the Crypto Fear & Greed Index recorded an “Extreme Fear” score of 25 in its latest update.
Related: Traders caution that Bitcoin’s ‘bull run is over’ amid 50% crash warnings
Bitcoin “really needs to stabilize here, maintaining recent higher lows, and make another attempt at the monthly open from where it was rejected yesterday,” noted trading account AlphaBTC on X.
However, not all analysts share a negative outlook.
David Hernandez, a crypto investment specialist at 21Shares, suggested that Bitcoin’s “opportunity window” might quickly reopen for upward price movement if the US Consumer Price Index (CPI) indicates any signs of relief or the “continuation of the immaculate disinflation narrative,” stating:
“Bitcoin is coiled and ready to spring upward.”
Meanwhile, Michaël van de Poppe, founder of MN Trading Capital, pointed to gold’s recent 5.5% drop from its highs as a sign that “the rotation” into Bitcoin and altcoins may be commencing.
Magazine: Bitcoin could struggle if it fails to catch gold, XRP bulls are back in the fight: Trade Secrets
