Veteran trader Peter Brandt has recently raised concerns about the possibility of Bitcoin dropping to as low as $44,000. He based his prediction on a technical indicator that signals a bearish outlook for the flagship cryptocurrency. Brandt suggested that Bitcoin could plummet to $44,000 if it has indeed completed a double top pattern. A double top is a bearish formation that indicates a potential trend reversal to the downside after reaching two consecutive peaks with a moderate decline between them.
Although Brandt’s prediction caught the attention of the crypto community, there were contrasting views from other analysts. For instance, analyst JK argued that the depth of the top in Bitcoin is only around 10% of its price, suggesting that a true double top typically requires at least a 20% decline according to renowned analyst Richard Schabacker. Brandt seemed to acknowledge JK’s perspective, leaving room for the possibility that a double top may not have been completed and Bitcoin could see a bullish reversal instead.
Colin, another analyst, also weighed in on the discussion by disputing the notion of a double top for Bitcoin. He pointed out the strong rebound in Bitcoin’s price after hitting the lower ranges, indicating more of an accumulation phase rather than distribution. Building on Schabacker’s principles, analyst Chartvist emphasized the discrepancy in volume profiles, highlighting the lack of high volume for the second peak in a typical double top formation.
Adding to the mix, crypto analyst CrediBULL Crypto provided his insights on the potential drop of Bitcoin to $44,000. He suggested that Bitcoin would need to drop to the demand area at $53,000 to initiate such a downtrend. However, for Bitcoin to reach $44,000, it would have to fail to maintain support above $53,000. Despite the bearish outlook, CrediBULL Crypto remained optimistic, labeling the scenario as the least likely among his outlined possibilities for Bitcoin, indicating a potential reversal from the current price range.
The debate surrounding Bitcoin’s price potential remains active among experts and analysts in the crypto space. While some predict a significant drop to $44,000 based on technical indicators, others argue against the formation of a double top and foresee a more bullish trajectory for Bitcoin. As the market continues to evolve, it will be interesting to see which scenario ultimately plays out and how Bitcoin’s price responds to the conflicting predictions.