Peter Brandt, a well-respected analyst with a remarkable 50 years of market experience, has issued a cautionary forecast regarding Bitcoin (BTC). In a recent analysis shared on his X account, Brandt indicated that the established parabolic growth trajectory for Bitcoin has been disrupted, leading to expectations of a steep decline.
The analyst”s assessment suggests that Bitcoin”s price might plummet as low as $25,000. He emphasized that the typical growth pattern witnessed in Bitcoin”s price history has now been broken, which could result in a sharp downturn. Brandt pointed out that the current market cycle appears considerably weaker when compared to previous bullish phases, with the cryptocurrency exhibiting diminishing momentum.
Brandt analyzed historical performance, noting that returns during each bull market cycle have continued to decline. For instance, after the first halving event on November 28, 2012, Bitcoin experienced a 100-fold increase, followed by a 74-fold surge after the 2016 halving, and merely an eightfold rise post the 2020 halving. This pattern indicates that each new cycle is likely to yield progressively lower upside potential.
As the market progressed following the most recent halving event, which took place in April 2024, Bitcoin”s price doubled by October of this year, reaching an all-time high of $126,000. However, Brandt highlighted that since reaching this peak, Bitcoin”s price has dropped below $90,000, breaking the parabolic curve that has historically signaled substantial price increases in previous cycles.
Brandt”s analysis leads to the conclusion that Bitcoin has entered a bearish phase. He referenced a historical trend indicating that whenever Bitcoin breaches its parabolic curve, it has generally experienced declines of over 80%. Consequently, he has predicted a potential price drop to around $25,240, representing 20% of its all-time high.
Brandt”s remarks serve as a significant warning for investors, urging them to reassess their positions in light of these developments. As always, investors should conduct their own research and consider market conditions before making decisions.
