Seasoned trader Peter Brandt has expressed a bearish sentiment on Bitcoin (BTC) as the flagship cryptocurrency’s price hovers about 10% below its all-time high reached three months ago.
Brandt, who has a substantial following of 729,100 on the social media platform X, shared that Bitcoin is exhibiting a bearish chart pattern on the daily time frame. His analysis suggests that Bitcoin is currently forming a “Bump, Hump, Slump, Bump, Dump” pattern.
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This pattern is characterized by an initial price increase (the “Bump”), indicating bullish momentum. This is followed by a “Hump,” a consolidation phase, and then a “Slump,” indicating a price decline. After the “Slump,” another “Bump” occurs, leading up to a final “Dump.”
According to Brandt’s chart, Bitcoin’s closest support level is around $65,060, followed by a second support level at $60,775. He believes that Bitcoin’s next movement is likely to be downward.
“Sometimes the most obvious interpretations of a chart work out, most of the time the charts morph. But the most obvious is this: Break through $65,000, then market goes to $60,000. Break through $60,000, market goes to $48,000,” Brandt stated.
At the time of writing, Bitcoin is trading at $66,276.
The veteran trader also noted that Bitcoin is exhibiting decreasing rates of return, which could mean that BTC has already reached the top of the current cycle. Brandt provided a historical perspective, showing how each bull market cycle since 2011 has resulted in diminishing returns:
- The 2011-2013 cycle lost 82% of the momentum seen in the 2010-2011 move.
- The 2015-2017 cycle lost 79% of the momentum of the 2011-2013 move.
- The 2018-2021 cycle lost 82% of the momentum of the 2015-2017 move.
Based on this pattern of decay, Brandt suggests that the 2022-2024 advance may already be complete.
As the crypto market watches closely, Brandt’s analysis serves as a cautionary tale for investors, highlighting the potential for significant downward movement in Bitcoin’s price.
