Veteran trader Peter Brandt recently raised the possibility of Bitcoin dropping to as low as $44,000. This prediction was based on a technical indicator that painted a bearish outlook for the flagship cryptocurrency. Brandt suggested that Bitcoin could experience a severe reversal to the downside if it has completed a double top pattern.
However, not everyone agreed with Brandt’s analysis. Another analyst, JK, pointed out that the depth of the top in Bitcoin was only around 10% of its price, indicating that a true double top typically requires a 20% decline. Based on this insight, it seemed unlikely that Bitcoin had actually formed a double top.
Colin, another analyst, also weighed in on the discussion, expressing his belief that there was too much strength in Bitcoin’s recent price action to suggest a double top pattern. Instead, Colin argued that the current price movement indicated accumulation rather than distribution.
Echoing similar sentiments, Chartvist highlighted the discrepancy in the volume profile, stating that a true double top pattern usually involves high volume for the first peak and low volume for the second peak. This observation further cast doubt on the likelihood of Bitcoin dropping to $44,000.
Crypto analyst CrediBULL Crypto provided additional insights into the potential downtrend in Bitcoin’s price. He suggested that a drop to the $40,000 range could be initiated if Bitcoin fails to hold above $53,000. However, CrediBULL Crypto remained optimistic, stating that the scenario of Bitcoin dropping to $44,000 was the least likely to materialize among all the possible outcomes he had outlined for the cryptocurrency.
The prediction of Bitcoin dropping to $44,000 based on a double top pattern remains a topic of debate among analysts. While some, like Peter Brandt, have raised concerns about a potential bearish reversal, others have pointed out inconsistencies in the data that suggest otherwise. As the cryptocurrency market continues to evolve, it is essential for traders and investors to critically analyze multiple perspectives and consider all possibilities before making any significant decisions.
