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- Bitcoin’s price action mirrors its 2021 crash pattern, sparking fresh concerns among top market analysts.
- Peter Brandt warns of a possible $80K drop if Bitcoin continues to fail key resistance levels.
- A Golden Cross offers hope, but experts remain divided as institutional demand clashes with bearish signals.
Bitcoin is showing signs of a potential downturn as chart patterns begin to resemble the conditions that led to the 2021 market collapse. Peter Brandt has issued a warning that the existing arrangement might lead to a major correction in the price of 80,000 dollars or more.
Of late, Bitcoin has been trading sideways, with a trend hovering between $60,000 and $105,000 over a period of seven months. This move resembles the one observed prior to the 2021 impairment when Bitcoin fluctuated between $30,000 and $65,000 and then was basically impaired.
Brandt argues that failed breakouts numerous times indicate distribution and not accumulation. In 2021, the crash touched the point of $69,000 and crashed to about 15,500. In case such another situation happens, Bitcoin will possibly fall out of the $105,000 scale into about the situation of $23,600.
Although there are rosy sentiments between spot ETF approvals and institutions, Bitcoin has not managed to cross the barrier of the $105,000 resistance. Michael and de Poppe pointed out that bullish momentum is essential when staying above levels of $106,000. The latest unsuccessful breakout resulted in the liquidation of long positions, and the price dropped to the range of 104,000 to 105,000.,
Golden Cross and Mixed Market Signals Fuel Uncertainty
Analyst Ali Martinez identified a significant support point at $104,124. If this is not observed, Bitcoin might plummet to $97,405. This trend is an implication of previous market actions, whereby resistance rejections gave way to corrections.
At the same time, other analysts are still optimistic about the recent Golden Cross. Trader Tardigrade emphasized that Bitcoin’s 50-day moving average has shifted above the 200-day moving average. Such a signal has already led to price increases of over 100% in the past, which would mean prices between $152,000 and $229,000 may be attained.
Furthermore, over 60 companies declared the addition of Bitcoin to their treasuries in the span of one week, and it is also a part of the expanding positive atmosphere in the market. Brandt, however, warns that when fundamental strength is witnessed at market tops, there is an excellent prospect of a sharp correction.
The present format of Bitcoin is still attracting parallels to its 2021 all-time success. Greater interest is awaited among market players to ensure either a descending breakout or a steep fall.
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