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- Peter Brandt flags parabolic breakdown as Bitcoin risks corrective phase
- Technical history suggests Bitcoin could revisit $25,240 if patterns repeat
- Veteran trader warns slowing growth reflects Bitcoin maturity not collapse
Bitcoin faced renewed downside attention after veteran trader Peter Brandt issued a strong technical warning in a recent post on X. His caution emerged as Bitcoin struggled to hold momentum above the $90,000 level, keeping market sentiment fragile. Brandt claimed that Bitcoin had undergone a break below a long-term parabolic growth pattern, which had supported significant bull cycles before. In his view, such technical infractions in the past have been followed by steep and protracted downfalls. Another point that he made was that the growth cycles in the history of Bitcoin show evident exponential decays.
Initial cycles brought about explosive percentage returns, whereas the latest rallies have provided relatively low returns. Brandt focused on the fact that this slowdown was a sign of the market’s maturity rather than the inherent failure of the asset. To him, Bitcoin is still sustainable and applicable, but investors can no longer expect the radical rises that it has experienced during its early years. As it has happened, Bitcoin has been moving through parabolic stages and then drastically corrected in the general context.
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Breakdown Signals Potential Move Toward $25,240
According to Peter Brandt, a long-term logarithmic chart of Bitcoin indicates that Bitcoin has four significant parabolic gains, and its price has broken every support curve that keeps the bullish momentum. He cites the 2018 cycle as a pivotal precedent, when Bitcoin dropped by almost $20,000 to an approximate $3,200, having reached the parabolic structure and collapsed. Considering the same trend in the present times, Brandt indicates the possible bottom at approximately $25,240, which is approximately one-fifth of the entire lifetime of Bitcoin.
Notably, he emphasizes that it would not mean the death of Bitcoin. Instead, it would show a shift to less volatile and more stable market behaviour, as would be expected of maturing assets. The farther the market is from capitalization, the more extreme exponential returns are difficult to sustain. Another factor that Brandt points to is the psychology of the investors, which breeds the tendency to sell when chart patterns that seemed popular fail. The further failure of Bitcoin to rebound to more than $90,000 is more of a sentiment burden. No one should bed history on her deathbed, because, as Brandt cautions, it has cost a lot of money to ignore historical price behavior, and expectations rise upwards.
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