Reason Why A 75% Plunge Could Be Looming
In his post, Peter Brandt pointed out that Bitcoin has been moving sideways for 30 weeks since its last all-time high (ATH). He referenced historical patterns, explaining that when Bitcoin fails to make a new ATH within this time frame, it typically experiences a decline of over 75%.
However, he made it clear that this was an observation based on historical data rather than a prediction or personal opinion, :Hey Bitcoiners
— Peter Brandt (@PeterLBrandt)
Are you familiar with the concept of “market analogs?”
Here is something to think about
It has been 30 weeks since made an ATH
Whenever has not made a decisive new ATH within this time length a 75%+ decline has occurred
I am always amused by people who confuse a market observation with a market opinion. Drivers who cannot turn their heads in both directions always end up in an accident.
Bitcoin Performance And Fundamental Analysis
Despite Brandt’s cautionary note, Bitcoin has regained ground after briefly dipping below $60,000. Today, Bitcoin is trading at $62,172, up 2.8% in the past 24 hours after touching a low of $58,982 yesterday.
While some traders remain hopeful that Bitcoin will continue its upward trajectory, others are growing concerned about potential volatility, especially given the historical patterns that Brandt has outlined.
Data from the CryptoQuant platform further supports the notion of potential downside pressure. According to a recent , BTC’s “Coinbase Premium Gap” has reached its lowest level since August, signaling a wave of selling activity. The Coinbase Premium Gap measures the difference between Bitcoin’s price on Coinbase (a US-based exchange) and other global exchanges.A positive premium typically indicates strong buying pressure from US investors, while a negative premium can reflect waning demand. The current negative premium could suggest that institutional interest in Bitcoin is declining, adding weight to Brandt’s observation that Bitcoin might be on the brink of a major correction.
Featured image created with DALL-E, Chart from TradingView