Experienced trader Peter Brandt has raised the possibility of Bitcoin falling down to just $44,000. He predicted that this could happen based on a technical indicator that paints a picture bearish outlook for the flagship crypto.
Why Bitcoin Could Fall to $44,000
Brandt predicted in an X (formerly Twitter) after that Bitcoin could fall to $44,000 as the flagship crypto one double top. A double top is a bearish pattern that indicates that BTC could witness a serious reversal to the downside, after two consecutive peaks and a moderate decline between them.
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Based on Brandt’s chart, the flagship crypto may have reached a double top. Another analyst, JK, responded to Brandt’s post, noting that the depth of the top in Bitcoin is about 10% of the price. Based on this, JK suggested that it is unlikely that Bitcoin would form a double top, as Richard Schabacker (one of the largest analysts) said that 20% and no less is needed for a real double top forms.
Brandt seemed to agree with JK’s reasoning, suggesting that it was also possible that a double top has not yet been reached and Bitcoin could witness a bullish reversal from its current price range. Some other analysts also shared their opinions in response to Brandt’s message. One of them, Colin, named that he thinks this was not a double top for Bitcoin.
Colin added that there was too much force on these two bounces off the lower ranges and back into the channel to assume that a double top. Instead, he believes Bitcoin’s recent price action is currently an accumulation and no distribution area.
Based on Schabacker’s analysis, so does another analyst, Chartvist explained why BTC is unlikely to have formed a double top. The analyst indicated that the volume profile is not in line with the double top technique as there is usually high volume for the first peak and low volume for the second peak.
How BTC Could Fall to $44,000
Crypto analyst CrediBULL Crypto recently provided insights into how Bitcoin could fall to the Range of $40,000. He stated that Bitcoin fell to the asking area at $53,000 could give impetus to such a downward trend. However, BTC will not have to manage to hold more than $53,000 for the possibility of Bitcoin falling to $44,000 to become feasible.
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CrediBUILL Crypto is optimistic that BTC will not fall to such levels. He noted that this was “the least likely situation” of all the scenarios he had outlined for Bitcoin. Instead, he believes Bitcoin is likely to rebound from its current price range. He predicts that flagship crypto will rise as high as $100,000 in the long-term.
Featured image created with Dall.E, chart from Tradingview.com