A recent commentary from market veteran Peter Brandt suggests a further Bitcoin downtrend could be possible.
The past two days have been rough for crypto investors. Spurred by hawkishness from the Federal Reserve, the market has turned into a sea of red.
While some have suggested that the bleeding will likely stop soon, veteran commodities trader Peter Brandt has unveiled a scenario where this hemorrhage could just be starting.
Look out Below
Over the past two days, Bitcoin‘s price has dropped nearly 15% from record highs around $108,000 to lows near $92,000 amid slower quantitative easing expectations.
While market participants are hoping for a near bounce, veteran trader Peter Brandt has outlined one scenario where Bitcoin’s price could continue to fall to near the $70,000 price point.
The price action trader shared this analysis on Friday, December 20, citing an expanding triangle pattern on the asset’s daily candle chart.
The expanding triangle chart pattern often signals market uncertainty. Depending on where the price breaks out, it can signal the continuation of a trend or a reversal. It is usually characterized by higher and lower highs as buyers and sellers tussle for control.
Per Peter Brandt’s chart, Bitcoin entered this pattern towards the end of November 2024 as it rallied to the $99,000 price point. Price support is currently around the $90,000 price level. Brandt asserts that the asset’s price could tumble to around $76,000 if this support fails.
Still, in a separate post, Brandt suggested Bitcoin could launch a reversal to the upside from the support by the end of the day.
This view received support from fellow trader “HTL-NL.” The trader contended that the $90,000 price level could offer a good long entry, citing the 12-hour stochastic.
At the time of writing, Bitcoin is trading near the $95,000 price point after bouncing from 24-hour lows around the $92,200 price point.