The Real Reason Behind 75% Bitcoin Price Crash Prediction By This Expert

Veteran trader Peter Brandt has raised concern among the crypto community with his Bitcoin price prediction of a potential 75% crash. Trading around $109712, Bitcoin was nearing its all-time high.

Many investors are now questioning whether the cryptocurrency will continue to rise or face a major downturn. Brandt’s warning comes at a time when the market dynamics appear similar to those in 2022, when Bitcoin experienced a sharp decline.

Bitcoin Price at a Critical Juncture

Bitcoin’s price was $109,701.15 at the time of writing, placing it at a critical juncture. Peter Brandt, a renowned market analyst, warns that the current setup mirrors the one from 2022, when Bitcoin faced a significant crash.

He suggests that, if history repeats itself, Bitcoin could drop by as much as 75%, testing lower support levels.

Brandt’s technical analysis indicates that Bitcoin is struggling to break through key resistance levels, which could lead to a sharp pullback.

Despite the current strength in the market, there are signs of potential weakness that investors should watch closely.

Brandt’s caution about the bitcoin price crash prediction is based on the belief that the price action and technical indicators show a setup similar to 2022.

This raises concerns about whether Bitcoin will continue its upward trajectory or face a significant correction. The next few weeks could prove crucial in determining Bitcoin’s future path.

On-Chain Bitcoin Indicators to Watch

Bitcoin’s price has surged to $110,000 amid a broader crypto market rally, with daily trading volume spiking by 28.97% to $56.6 billion.

However, Glassnode, a blockchain analytics platform, has raised concerns about potential overheating in the derivatives market.

Key indicators, such as rising short liquidations, increasing premiums for long positions, and growing open interest, suggest that the market may be becoming overly bullish.

Despite these warning signs, Glassnode notes that funding rates have only seen a modest uptick, which reflects cautious optimism among traders.

The derivatives market’s current dynamics could set the stage for a reversal if confidence starts to shift. Traders with leveraged positions could be vulnerable if a correction occurs.

The rise in long positions and short liquidations could fuel a sharp drop if market sentiment changes, especially if macroeconomic factors like inflation and the upcoming CPI data influence investor behavior.

Derivatives and Market Sentiment

Bitcoin’s price has continued its upward trajectory, with trading volume surging by nearly 30%, signaling a boost in market participation.

Open interest in derivatives has also increased to $76.25 billion, rising by 1.38%. While this shows that traders are preparing for future price movements, the growth in open interest remains stable, reflecting cautious optimism in the market.

However, there are signs that the market may be overheating. The rise in long liquidations during periods of consolidation points to an increasing risk of a potential price pullback.

If Bitcoin experiences a correction, the liquidations could exacerbate downward pressure, creating more market volatility.

In the last 24 hours, liquidations totaling $163.26 million were recorded, with short positions being the main contributor. This suggests that Bitcoin’s recent price surge forced many short positions to close.

Additionally, the sharp rise in options volume (+76.12%) indicates heightened speculative interest, reinforcing expectations of significant price movements in the near future.

Bitcoin Price Prediction: Technical Indicators and Market Analysis

Bitcoin has been reaching high points in price, going up to $110,000, even with possible signs of weakness. The status of MACD indicates that there is still strong momentum to support the short term.

However, when the MACD line and signal line come closer, it may indicate that bullish momentum is easing, especially if the trend shows no improvement. Morever, the price of Bitcoin might have a hard time going higher than these levels.

The Awesome Oscillator (AO) is also pointing to a clear increase, since its estimate remains high and always positive.

The bullish trend is still in place, but the increasing height of the histogram suggests the end of the upward trend may be near. During slumps, the price can stop and go marginally down for a while before picking up again.

They must often examine the current market’s support and resistance points. The crucial level for Bitcoin now is at $108,000−$108,500, and if higher than $110,000 is reached, the coin may break its records or get pulled back for a moment.

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