Bitcoin Could Drop Below $40K This Cycle According to Veteran Trader

Veteran trader Peter Brandt is forecasting a significant drop for Bitcoin (BTC), suggesting there's a 50% likelihood it could fall below $40,000 within this market cycle.

In a recent update, Brandt indicated that Bitcoin might drop by over 35% from its current level before the end of next year. He stated, “There’s a 50% chance BTC could dip below $40,000 before the latter part of the halving cycle.”

It will be my honor to record a video today for @RealVision @RaoulGMI to discuss this chart. I believe there is a 50% chance $BTC visits sub-$40k before the last half of the halving plays itself out pic.twitter.com/FJGuYKlvXC

— Peter Brandt (@PeterLBrandt) August 8, 2024

Brandt also pointed out that Bitcoin’s recent price movement could be forming an inverted right-angled broadening triangle, a pattern reminiscent of the 2020 drop at the start of the Covid-19 pandemic.

This pattern, known as the falling broadening wedge, might eventually lead to a bullish trend if the lower trendline holds as support.

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The inverted right-angled broadening triangle concept was introduced by Richard W. Schabacker in his 1934 book, Technical Analysis and Stock Market Profits. Brandt believes this pattern could be relevant to Bitcoin’s current chart.

Currently, Bitcoin is priced at $61,306, having risen by 10.7% in the last 24 hours.