Peter Brandt Warns of Bitcoin Price Crash to 48K if Bull Run Ends
Key Points:
– Bitcoin (BTC) has experienced a recent price drop after the US Fed announced only one interest rate cut.
– Analysts suggest that the slowing price surge of Bitcoin is due to a widening gap between its price and adoption rate.
– Seasoned trader Peter Brandt warns of a potential drop to $48k if crucial support levels are breached.
– The total cryptocurrency market cap has seen a decline, reaching approximately $2.57 trillion.
Bitcoin’s Price Movement:
The price of Bitcoin (BTC) has once again fallen below $67,000 in the last 24 hours, dropping by 1.2% to reach around $66,762 during the early Asian trading session on Friday.
Signs of Concern for Bitcoin Traders:
The bullish sentiment surrounding Bitcoin has weakened following the US Federal Reserve’s announcement of a single interest rate cut in the future. On-chain data from CryptoQuant indicates that Bitcoin miners have increased their selling activity, hinting at a potential capitulation.
Challenges for Miners:
There are red flags raised by the challenges faced by miners, as they actively sell their holdings on exchanges and through over-the-counter (OTC) channels. This could be a sign of capitulation in the market.
Analysis by Fidelity Investments:
Jurrien Timmer, the global macro director at Fidelity Investments, points out the divergence between Bitcoin’s price and its adoption rate as a reason for the subdued bullish outlook. Despite this, Timmer remains optimistic about Bitcoin’s potential as a store of value, likening it to “exponential Gold.”
Market Reaction and Outflows:
US spot Bitcoin ETFs have witnessed net outflows over the past week, with approximately $226 million liquidated on Thursday alone. As Bitcoin struggles to surpass the $72,000 resistance level, data from Santiment suggests that the narrative of a dip has gained traction on social media platforms.
Bearish Warnings from Peter Brandt:
Veteran trader Peter Brandt has issued warnings to crypto traders about bearish indicators, citing Bitcoin’s decline compared to previous bull cycles. He cautions that a weekly close below $66,000 could lead to a drop towards $60,000, with further potential support at $48,000 for a recovery.
Final Thoughts:
Bitcoin’s recent slump has raised concerns among traders and investors. Share your predictions and thoughts on the market’s current state.
Tags: Bitcoin, Price Analysis.