Peter Brandt Warns Bitcoin Rally May End as BTC Price Faces Bearish Trend

TLDR

• Peter Brandt warns that Bitcoin’s recent rally may be the last retest of a bearish pattern.
• Brandt predicts Bitcoin could drop below $70,000, citing long-term price channel behavior.
• Bitcoin’s current price zone of $88,000–$92,000 is crucial for the market’s direction.
• Despite volatility, the Fear & Greed index shows signs of shifting from “extreme fear” to “fear.”

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Veteran trader Peter Brandt has expressed caution regarding Bitcoin’s (BTC) future price movements. In his recent post on X, Brandt pointed to a broadening top pattern, often seen as a bearish indicator in technical analysis. He suggested that the recent rally in Bitcoin’s price could be the final test of this pattern before the market experiences a potential downturn.

Bitcoin’s price has faced significant fluctuations, with the most recent rally failing to push the cryptocurrency above crucial resistance levels. The price has stalled in the $88,000–$92,000 range, which Brandt believes is a critical zone for determining Bitcoin’s next major move.

Bitcoin’s Broadening Top Pattern: A Bearish Signal?

Brandt’s latest analysis focuses on the broadening top pattern, also known as a megaphone pattern. This formation typically signals that the price could be headed for a reversal. According to Brandt, this week’s rally could mark the only retesting of the pattern before a downturn. The broadening top often suggests that the upward momentum has run out of steam, making further gains unlikely.

In his post, Brandt states, “This week’s rally may be all the retesting of the broadening top we will see.” This cautionary note has traders and analysts on edge, with many keeping a close eye on the price action in the coming weeks.

Bitcoin Price Targets and Lower Boundaries

Brandt’s analysis further suggests that Bitcoin may have failed to reach the upper boundary of its long-term price channel during this year’s rally. In past market cycles, similar price behavior has often led to declines towards the lower boundary of the channel. For Bitcoin, this lower boundary begins below $70,000, extending into the mid-$45,000 range.

This pattern leads Brandt to treat the region between $70,000 and $45,000 as a realistic target if the bearish scenario unfolds. Brandt has also assigned a 30% probability that Bitcoin has already topped in the current market cycle, which further fuels concerns about potential downside risk.

Market Sentiment and Potential Bitcoin Recovery in 2025

Despite the bearish outlook from Brandt, there are still hopes for a recovery in 2025. Bitcoin’s price action in December has shown some signs of strength, with the cryptocurrency bouncing from around $85,000 to briefly testing the $94,000 level. This short-term rebound has led some traders to hope for a Christmas rally that could push prices higher.

At the same time, retail investors are keeping a close eye on $97,000 as an important resistance level. However, Bitcoin has yet to break this barrier, indicating that market sentiment remains cautious.

The Fear & Greed Index, a popular tool for measuring market sentiment, has been in the “extreme fear” zone for several months. However, it recently shifted into the “fear” zone, signaling that market participants are starting to regain some optimism, even as Bitcoin’s price stalls in the current range.

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