Bitcoin’s price chart is starting to show similarities to the soybean market of about 50 years ago, when prices reached an all-time high and then plummeted 50% as global supply began to outstrip demand, warns veteran trader Peter Brandt.
However, other Bitcoin (BTC) analysts believe the chart points to further upside ahead.
“Bitcoin is forming a rare extended top on the chart. This pattern is famous for its tops,” Brandt told Cointelegraph.
“In the 1970s, soybeans made such a big top, but then they lost 50 percent in value,” Brandt said.
Brandt warned that if history were to repeat itself, it would not only impact Bitcoin, but also “smash” Michael Saylor’s company Strategy.
Strategy, Inc. (MSTR) stock has declined 10.13% over the past 30 days as corporate Bitcoin government bonds face increasing pressure from a sharp decline in net asset value (NAV).
Peter Brandt says Bitcoin’s ‘final thrust’ may never come
Brandt also warned that the big Bitcoin pump the crypto community has been waiting for may never materialize, and that Bitcoin could instead head towards low levels around $60,000.
However, most analysts believe Bitcoin still has one big rally left in the cycle, with industry insiders such as BitMEX co-founder Arthur Hayes saying the price could rise to $250,000.
According to CoinGlass, the fourth quarter has historically been Bitcoin’s strongest quarter, with an average return of 78.49%.
October is also seen as a strong month for Bitcoin.
However, sentiment has turned downward and analysts are becoming more cautious after US President Donald Trump’s recent tariff concerns triggered a broader market decline after hitting record highs.
Cryptocurrency sentiment plunges into “extreme fear”
In what was supposed to be a bullish month for cryptocurrencies, the Crypto Fear & Greed Index posted an “Extreme Fear” score of 25 in Wednesday’s update.
Related: Bitcoin ‘bull market is over’, traders warn of 50% drop in BTC price
X trading account Alpha BTC said Bitcoin “needs to sustain its recent lows and hold here and re-attempt the monthly open that was rejected yesterday.”
However, not all analysts are so bearish.
David Hernandez, crypto investment specialist at 21Shares, said that if the US consumer price index (CPI) shows any signs of easing or a “continuation of the perfect disinflationary story,” Bitcoin’s “window of opportunity” could open quickly again, with the potential for price appreciation, adding:
“Bitcoin is coiled and about to jump.”
Meanwhile, MN Trading Capital founder Michael van de Poppe said gold’s recent 5.5% drop from its highs is a sign that a “rotation” into Bitcoin and altcoins may be starting.
Magazine: Bitcoin suffers if it doesn’t catch gold, XRP bulls return to fight: Trade secrets
