Trader Who Called Bitcoin Price Crash in 2017 Raises ‘Double Top’ Concerns

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Bitcoin (BTC) could form a so-called “double top” pattern after falling more than 30% from its all-time high of $ 69,000, suggests Peter Brandt, a veteran trader known to have correctly labeled the top of the market as crypto in December 2017.

The bubble has burst. Bull market in $ BTC ended for some time. For an analog look at the 2011 Gold chart on neighborhoods pic.twitter.com/AUSiGH0eCg

– Peter Brandt (@PeterLBrandt) December 22, 2017

The CEO of Factor LLC recalled Bitcoin’s inability to extend its price hike above its previous all-time high of nearly $ 65,000 after a second try. Meanwhile, it illustrated an immediate level of support for the BTC price at a so-called cleavage close to $ 30,000 while warning of further declines below this key level.

BTC / USD weekly price chart with double high pattern. Source: TradingView, Peter Brandt Is a 50% Bitcoin Crash Realistic?

In detail, traditional chartists perceive the formation of two consecutive highs, each leading to a strong bearish price retracement, as a sign of a bearish reversal. The downside target in a double top scenario is approximately as deep as the height of the pattern formation.

But the double-top drop target is somewhat unrealistic here, as confirmation of the trend would suggest a nearly $ 35,000 drop in the price of Bitcoin. This means that the price of BTC would risk falling below $ 0 in a perfect world, a highly unlikely scenario.

Nonetheless, if the price were to drop below the $ 30,000 neckline, Bitcoin’s ultimate downside target could turn out to be the 200-week exponential moving average (200-week EMA; the orange wave in the chart below), currently around 50% below current price points, near $ 23,500.

Daily BTC / USD price chart with 200 week EMA support. Source: TradingView

The 200 week EMA was instrumental in announcing lows in a bear market, as shown by the upward pointing arrows in the chart above. However, Brandt recalled:

“A chart template is NOT a chart template until it’s completed and confirmed. Until then, I’m only interested in passing.” Just another drop in BTC price?

Ignoring the potential bearish outlook, Bitpanda Chief Product Officer Lukas Enzersdorfer-Konrad claimed that Bitcoin’s price drop from $ 69,000 to $ 42,000 is similar to its price crash of May 2021, in which he said. dipped over 50%, only to cut all those losses and hit a new high record later.

“Similar to the recent decline, overleveraged positions have increased volatility and wiped out most long positions,” Enzersdorfer-Konrad told Cointelegraph in an emailed statement referring to the $ 2.5 billion. liquidation in a few hours on December 4. , which caused an intraday correction of around 20% in most liquid crypto assets.

The analyst added:

“The Bitcoin market needs time to recover in these situations, and intraday charts are still volatile, but it is still bullish over a longer period.”

Related: Bitcoin Falls Below $ 47,000, Erasing October Gains – The Bear Market Begins?

From a bullish technical perspective, a popular independent market analyst known by the pseudonym “Wolf” has portrayed Bitcoin as an oversold asset based on its Relative Strength Index (RSI) readings on a daily chart.

Daily BTC / USD price chart with RSI rebound. Source: TradingView, @IamCryptoWolf

Wolf expected the price of BTC to test $ 51,780 as the next level of resistance, with an upside target extended to nearly $ 60,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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