Veteran trader Peter Brandt has raised the possibility of Bitcoin dropping to as low as $44K. He predicted this could happen based on a technical indicator that paints a bearish outlook for the flagship crypto.
Why Bitcoin Could Drop To $44,000
Brandt predicted in an X (formerly Twitter) post that Bitcoin could drop to as low as $44,000 if the flagship crypto has completed a double top.
Has Bitcoin completed a double top?
Yes or no????
If yet, minimum target is $44,000
What do you think?$BTC pic.twitter.com/EpzeihHJtF— Peter Brandt (@PeterLBrandt) July 7, 2024
A double top is a bearish pattern that indicates that BTC could witness a severe reversal to the downside, having hit two consecutive peaks and a moderate decline between them.
Based on Brandt’s chart, the flagship crypto may have completed a double top. However, another analyst, JK, responded to Brandt’s post, noting that the depth of the top in Bitcoin is around 10% of its price.
As we discussed in discord this week, no.
The depth of the “top” in BTC is around 10% of price, whereas Schabacker says 20% “and not much less” is required for a true double top
— JK (@jonbking) July 7, 2024
Based on this, JK suggested that it is unlikely that Bitcoin formed a double top since Richard Schabacker (one of the greatest analysts) said that 20% and not less is required for a true double top to form.
Brandt seemed to agree with JK’s reasoning, suggesting that it was also possible that a double top hadn’t been completed and that Bitcoin could witness a bullish reversal from its current price range.
Some other analysts also shared their thoughts in response to Brandt’s post. One of them, Colin, mentioned that he doesn’t think that was a double top for Bitcoin.
Colin added that there was too much strength on these two bounces off the lower ranges and back into the channel to assume a double top. Instead, he believes that Bitcoin’s recent price action is currently an accumulation and not a distribution range.
Based on Schabacker’s analysis, another analyst, Chartvist, also explained why it is unlikely that BTC has formed a double top.
The analyst mentioned that the volume profile is not in line with the technique of a double top as there is usually a high volume for the first peak and a low volume for the second peak.
How BTC Could Drop To $44,000
Crypto analyst CrediBULL Crypto recently provided insights into how Bitcoin could drop to the $40,000 range.
He stated that Bitcoin dropping to the demand area at $53,000 could kickstart such a downtrend. However, BTC will need to fail to hold above $53,000 for the possibility of Bitcoin dropping to $44,000 to become feasible.
CrediBUILL Crypto is optimistic that BTC won’t drop to such levels. He noted that this was “the least likely to actually play out” among all the scenarios he had outlined for Bitcoin.
Instead, he believes Bitcoin will likely reverse from its current price range. He predicts that the flagship crypto will rise to as high as $100,000 in the long term.
