Veteran Trader Peter Brandt Predicts Bitcoin (BTC) Downtrend Amid Bearish Chart Patterns

• Bitcoin (BTC) is currently facing bearish sentiment as its price remains about 10% lower than its all-time high from three months ago.
• Renowned trader Peter Brandt has highlighted a bearish chart pattern in Bitcoin’s daily time frame.
• Brandt suggests Bitcoin’s nearest support levels are $65,060 and $60,775, according to his “Bump, Hump, Slump, Bump, Dump” pattern.

Seasoned trader Peter Brandt warns of potential Bitcoin downturn; check out his analysis on BTC’s next support levels and market outlook.

Peter Brandt’s Analysis Signals Potential Bitcoin Downturn

Peter Brandt, a veteran trader with a substantial following on social media platform X, has recently expressed a bearish outlook on Bitcoin (BTC). According to Brandt’s analysis, Bitcoin is currently forming a worrying chart pattern that suggests a potential decline in its value. This comes as Bitcoin’s price hovers about 10% below its all-time high reached just three months ago.

Understanding the “Bump, Hump, Slump, Bump, Dump” Pattern

Brandt’s chart presents a “Bump, Hump, Slump, Bump, Dump” pattern, a sequence that starts with an initial price increase (Bump), followed by a consolidation phase (Hump). This is then followed by a decline (Slump), a subsequent rise (Bump), and finally another drop (Dump). Based on this pattern, Brandt identifies Bitcoin’s nearest support at $65,060, with the next level at $60,775.

Critical Support Levels and Market Movements

Brandt emphasizes the importance of Bitcoin’s current price levels, stating that a breach below $65,000 could see the market move towards $60,000. Moreover, if the $60,000 support fails to hold, Bitcoin could potentially fall to $48,000. At the time of writing, Bitcoin is trading at $66,276, which places it quite close to these critical support thresholds.

Declining Rates of Return

Additionally, the veteran trader has noted a trend of decreasing rates of return in Bitcoin’s past bull markets, which might suggest that BTC has already hit the peak of its current cycle. According to Brandt, historical data points indicate a decay in gains from low to high across several market cycles:

• 2011-2013 saw an 82% loss in power compared to the 2010-2011 move.
• 2015-2017 experienced a 79% reduction in power compared to the 2011-2013 move.
• 2018-2021 lost 82% of the power of the 2015-2017 move.

If this trend of decay continues, the potential for further significant gains during the 2022-2024 period may be limited.

Conclusion

In summary, Peter Brandt’s analysis presents a cautious outlook for Bitcoin in the immediate future. By highlighting key support levels and the formation of the “Bump, Hump, Slump, Bump, Dump” pattern, Brandt suggests that traders should be prepared for potential downward movements in BTC’s price. As historical data indicates diminishing returns in successive bull cycles, investors may need to adjust their strategies accordingly to mitigate risks and capitalize on market movements.