Veteran trader Peter Brandt warns that Bitcoin’s price chart is beginning to mirror the soybean market from about 50 years ago, which peaked before collapsing by 50% as global supply outstripped demand.
Conversely, some Bitcoin (BTC) analysts remain optimistic that the charts suggest further upward movement.
“Bitcoin is exhibiting a rare broadening top on the charts, a pattern typically indicative of peaks,” Brandt informed Cointelegraph.
“In the 1970s, a similar top was formed by soybeans, leading to a 50% decline in value,” Brandt remarked.
Brandt cautioned that, if history repeats itself, it won’t solely impact Bitcoin; Michael Saylor’s company, Strategy, may also find itself “underwater.”
Strategy’s (MSTR) stock has fallen by 10.13% over the last 30 days due to corporate Bitcoin treasuries facing increasing pressure from a significant drop in net asset values (NAV).
Peter Brandt warns that Bitcoin’s “final thrust” may never occur
Brandt warned that the anticipated Bitcoin surge the crypto community is eagerly awaiting may not materialize, predicting that Bitcoin could instead drop to bearish levels as low as $60,000.
Nonetheless, many analysts believe Bitcoin still has one significant rally left in this cycle, a potential surge that could drive its price up to $250,000, according to industry voices like BitMEX co-founder Arthur Hayes.
The fourth quarter is historically Bitcoin’s strongest, yielding an average return of 78.49%, according to CoinGlass.
October is also regarded as a robust month for Bitcoin.
However, recent sentiment has shifted downward following a tariff scare from US President Donald Trump, which led to a broader market downturn after record highs, causing analysts to be more cautious.
Crypto sentiment dips into “Extreme Fear”
In what should be a favorable month for crypto, The Crypto Fear & Greed Index registered an “Extreme Fear” score of 25 in its latest update.
Related: Traders warn that Bitcoin ‘bull run is over,’ highlighting a potential 50% BTC price crash
Bitcoin “must hold its ground here, maintaining the recent higher lows and making another attempt at the monthly open where it faced rejection yesterday,” asserted trading account AlphaBTC on X.
Yet, not all analysts share a bearish outlook.
David Hernandez, a crypto investment specialist at 21Shares, suggested that Bitcoin’s “opportunity window” could reopen swiftly for upward price movements if the US Consumer Price Index (CPI) reflects any signs of relief or if the “immaculate disinflation narrative” continues, adding:
“Bitcoin is coiled and ready to spring upward.”
Meanwhile, MN Trading Capital founder Michaël van de Poppe noted gold’s recent 5.5% decline from its peaks as an indication that “the rotation” into Bitcoin and altcoins might be commencing.
Magazine: Bitcoin to face challenges if it can’t catch gold, with XRP bulls resurgent: Trade Secrets
