Veteran trader Peter Brandt raised the possibility of Bitcoin falling up to US$ 44,000. He predicted this could happen based on a technical indicator that shows a bearish outlook for the main encryption.
Why Bitcoin Could Drop to $44,000
Brandt predicted in an X (formerly Twitter) publish that Bitcoin could fall to $44,000 if the leading cryptocurrency completes a double top. A double top is a bearish pattern that indicates that BTC may witness a severe reversal to the downside, having reached two consecutive peaks and a moderate decline between them.
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Based on Brandt’s chart, the leading cryptocurrency may have completed a double top. However, another analyst, JK, to respond to Brandt’s post, noting that the depth of Bitcoin’s top is about 10% of its price. Based on this, JK suggested that it is unlikely that Bitcoin has formed a double top, as Richard Schabacker (one of the biggest analysts) has said that 20% and no less is needed for a true double top to form.
Brandt It appeared agree with JK’s reasoning, suggesting that it was also possible that a double top had not been completed and that Bitcoin could witness a bullish reversal from its current price range. A few other analysts also shared their thoughts in response to Brandt’s post. One of them, Collin, mentioned that he doesn’t think this was a double top for Bitcoin.
Colin added that there was plenty of power in those two hits in the lower ranges and back into the channel to take a double top. Instead, he believes that Bitcoin’s recent price action is currently a backlog and not a distribution range.
Based on Schabacker’s analysis, another analyst, Chartvist, also explained why BTC is unlikely to have formed a double top. The analyst mentioned that the volume profile is not in line with the double top technique as there is typically high volume for the first peak and low volume for the second peak.
How BTC Could Drop to $44,000
CrediBULL Crypto Analyst recently provided insights into how Bitcoin could fall to the $40,000 range. He stated that Bitcoin falling to the demand area at US$ 53,000 could kickstart this bearish trend. However, BTC will need to fail to hold above $53,000 for the possibility of Bitcoin falling to $44,000 to become viable.
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CrediBUILL Crypto is optimistic that BTC will not fall to such levels. He noted that this was “the least likely to happen” among all the scenarios he outlined for Bitcoin. Instead, he believes that Bitcoin will likely reverse its current price range. He predicts that the leading cryptocurrency will rise to as high as $100,000 long-term.
Featured image created with Dall.E, chart from Tradingview.com