Veteran trader Peter Brandt has raised the potential of Bitcoin dropping to as little as $44,000. He predicted this might occur based on a technical indicator that paints a bearish outlook for the flagship crypto.
Why Bitcoin Could Drop To $44,000
Brandt predicted in an X (formerly Twitter) post that Bitcoin could drop to as little as $44,000 if the flagship crypto has accomplished a double top. A double top is a bearish pattern that indicates that BTC could witness a severe reversal to the downside, having hit two consecutive peaks and a moderate decline between them.
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Source: X
Based on Brandt’s chart, the flagship crypto can have accomplished a double top. Nevertheless, one other analyst, JK, responded to Brandt’s post, noting that the depth of the highest in Bitcoin is around 10% of its price. Based on this, JK suggested that it’s unlikely that Bitcoin formed a double top since Richard Schabacker (one in all the best analysts) said that 20% and never less is required for a true double top to form.
Brandt seemed to agree with JK’s reasoning, suggesting that it was also possible that a double top hasn’t been accomplished and that Bitcoin could witness a bullish reversal from its current price range. Another analysts also shared their thoughts in response to Brandt’s post. Certainly one of them, Colin, mentioned that he doesn’t think that was a double top for Bitcoin.
Colin added that there was an excessive amount of strength on these two bounces off the lower ranges and back into the channel to assume a double top. As an alternative, he believes that Bitcoin’s recent price motion is currently an accumulation and never a distribution range.
Based on Schabacker’s evaluation, one other analyst, Chartvist, also explained why it’s unlikely that BTC has formed a double top. The analyst mentioned that the amount profile is just not in step with the technical of a double top as there will likely be a high volume for the primary peak and a low volume for the second peak.
How BTC Could Drop To $44,000
Crypto analyst CrediBULL Crypto recently provided insights into how Bitcoin could drop to the $40,000 range. He stated that Bitcoin dropping to the demand area at $53,000 could kickstart such a downtrend. Nevertheless, BTC might want to fail to carry above $53,000 for the potential of Bitcoin dropping to $44,000 to change into feasible.
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CrediBUILL Crypto is optimistic that BTC won’t drop to such levels. He noted that this was “the least prone to actually play out” amongst all of the scenarios he had outlined for Bitcoin. As an alternative, he believes Bitcoin will likely reverse from its current price range. He predicts that the flagship crypto will rise to as high as $100,000 in the long run.
BTC price struggles against bears | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com