The leading crypto Bitcoin lost its balance in last week’s wave of selling. There could be more selling pressure for BTC, which has lost its critical $60,000 support. Legendary trader Peter Brandt says Bitcoin could head towards these levels. Meanwhile, an analyst with a large following suggests that investors cannot expect Bitcoin to rally for at least a few more months.
Peter Brandt’s minimum Bitcoin target: $44,000
As you have been following on Kriptokoin.com, Bitcoin started the new week with a downtrend. BTC briefly fell as low as $54,260 before rebounding to $57,100. Despite this recovery, BTC has lost more than 8.4% since the beginning of the month, reflecting the cautious mood in the market. Meanwhile, the Fear and Greed Index continues to show fear among market participants, highlighting the importance of paying attention to influential market experts. Trading legend Peter Brandt, who has a reputation in the crypto market for ‘knowing every step of Bitcoin’s way’, commented on BTC’s price action. Brandt raised the possibility that Bitcoin may have completed its double top pattern, suggesting that the potential minimum target is $44,000.
A double top pattern is a bearish technical reversal pattern that typically signals a medium to long-term trend change from bullish to bearish. It forms when the price of an asset peaks, retraces and then rises to a similar level before falling again. Peter Brandt supported his analysis with a Bitcoin price chart that reflected his expectations. With the $44,000 level clearly marked, Brandt points to a significant downside risk if the double top pattern is confirmed.
It also has an alternative view!
However, Brandt’s outlook is not entirely bearish. He agrees that for a true double top formation, BTC’s “top” depth should be around 20% of the price, while the current depth is only around 10%. This nuance suggests that the double top formation may not fully meet the technical criteria, which means that the bearish scenario may not materialize.
How long will Bitcoin’s correction last?
Crypto analyst Benjamin Cowen says that based on history, the leading cryptocurrency could be in a downtrend until September or October before breaking to the upside. Looking at BTC’s 2019 chart, Cowen notes that it took Bitcoin 202 days to break out of a similar downtrend, a pattern that could also occur this time around. In this context, the analyst says, “If you look at the time interval between Bitcoin peaking and exiting the channel (2019), excluding the pandemic collapse, it took about 202 days, which was quite a long time.”
Cowen predicts that the breakout date will be around 90 days from now, or in October, as BTC has been in a downtrend for 114 days. However, he also notes that there is a possibility that this may not happen exactly as it did in 2019. Accordingly, the analyst makes the following statement:
If you look at where Bitcoin is right now and how long it’s been in this channel so far, it’s about 114 days or 115 days. In fact, 202 days would take you all the way back to October. It’s kind of interesting to think about where we are, so there’s a chance that in the short term this trend line could become significant. That doesn’t mean it’s going to happen exactly like it did in 2019. We already tagged the trendline three times. In 2019 we had a similar channel, I think we tagged it three or four times, and we eventually moved above that channel, so it’s something to keep in the back of your mind.
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