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Bitcoin’s (BTC) recent price plunge below $56,000 has captured the attention of investors and analysts alike. Veteran trader Peter Brandt has added to the growing sense of concern, predicting that Bitcoin could fall to $46,000. Let’s delve into the reasons behind this bearish outlook and the current factors affecting Bitcoin’s performance.
Peter Brandt’s Bearish Forecast
Peter Brandt, a seasoned figure in the trading community, has once again raised alarms about Bitcoin’s potential downturn. In a recent post on X, Brandt highlighted an “inverted expanding triangle” or “megaphone” pattern on Bitcoin’s price chart. This pattern, known for its potential to signal significant price declines, could see Bitcoin drop to $46,000 if the lower boundary is tested. Brandt also pointed to a series of lower highs and lows, indicating a troubling trend that suggests diminishing investor enthusiasm.
According to Brandt, the current pattern reflects a lack of buying energy, which is particularly striking given the recent halving event. This diminished enthusiasm among investors has led to a bearish sentiment, adding pressure on Bitcoin’s price and raising concerns about a potential prolonged slump.
Factors Influencing Bitcoin’s Decline
Several factors are contributing to Bitcoin’s recent price struggles:
- Awaiting US Job Data: The financial market is closely watching for the release of the US non-farm payroll data, expected tomorrow. This crucial economic report is anticipated to provide insights into the Federal Reserve’s potential rate cut stance. With the market anticipating a 25 basis points rate cut, investors are taking a cautious approach ahead of these key economic indicators.
- Whale Activity: Recent data reveals that a significant investor, often referred to as a “whale,” has been offloading substantial amounts of Bitcoin. According to Lookonchain, this whale recently sold 680 BTC, valued at approximately $38.77 million. Since December 2022, this whale has liquidated 3,938 BTC, contributing to the current market volatility.
- Waning Bitcoin ETF Momentum: The performance of the US Spot Bitcoin ETF has been lackluster, with recent data showing outflows totaling $325 million. Over the past six trading days, ETF outflows have exceeded $800 million, indicating a growing concern among investors and adding to the downward pressure on Bitcoin.
- Historical Trends in September: Historically, September has been a challenging month for Bitcoin. CoinGlass data shows that Bitcoin has only ended September in the green three times since 2013. This historical trend, combined with current bearish signals, has led to heightened caution among investors.
Also Read: Bitcoin ETFs Hit Record Outflows Of $211.15M In Single Day As Fear Grips Market; Fidelity’s FBTC Leads With $149.5M Exit
What Lies Ahead for Bitcoin?
As of now, Bitcoin is trading at $55,978, down by 3.65% from the previous day, with trading volume falling 14% to $30.93 billion. The BTC Futures Open Interest (OI) has also decreased by over 3% to $28.98 billion, reflecting waning trader interest. If the bearish momentum continues, analysts suggest that Bitcoin could potentially drop to $50,000.
Peter Brandt’s bearish outlook, coupled with the current market dynamics, has sparked significant speculation about Bitcoin’s future. As investors closely monitor these developments, the flagship cryptocurrency’s next moves will be critical in determining whether it can reverse the current downward trend or if it will continue to struggle.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
With a keen eye on the latest trends and developments in the crypto space, I’m dedicated to providing readers with unbiased and insightful coverage of the market. My goal is to help people understand the nuances of cryptocurrencies and make sound investment decisions. I believe that crypto has the potential to revolutionize the way we think about money and finance, and I’m excited to be a part of this unfolding story.
