Veteran Crypto Trader Warns Bitcoin Holders – Crash to $70k Incoming?

Veteran trader Peter Brandt updated his Bitcoin price outlook in a recent viral tweet. Looking at Brandt's chart analysis, a clear right-angled broadening triangle

Veteran crypto trader Peter Brandt has shared his latest thoughts on the Bitcoin price, and his analysis points towards a potential drop to the $70k range.

In a recent tweet, Brandt posted a chart of Bitcoin’s price action over the past few months, and his analysis suggests that the leading cryptocurrency is forming a right-angled broadening triangle pattern. This formation is characterized by a horizontal support line and an upward-sloping resistance line, and it usually indicates increasing market volatility.

The price recently broke below a critical support level near $92,333 after being rejected at the sloping resistance line above $108,000. According to Brandt's analysis, this move could lead to a drop towards the $76,614 level, which might serve as a potential target zone. The trader has also placed his stop-loss at $108,358, just above the resistance line, to account for any potential upward volatility.

Multiple Technical Indicators Seem to Support the Analysis

Several technical indicators also appear to be reinforcing this bearish outlook. The 8-period Simple Moving Average shows the price has broken decisively below it, while the Average True Range (ATR) sits at 3,852, indicating moderate to high volatility. The Average Directional Index (ADX) reading of 35.01 points to a strong trend formation, which, combined with recent price action, suggests bearish momentum.

The Bitcoin chart reveals key support levels to watch, with $90,675 serving as a crucial threshold that was tested before the recent decline. If the price manages to reclaim the $92,333 level and moves above the moving average, it could invalidate the bearish scenario. However, a move below $76,614 would align with the bearish target and validate the triangle pattern's projection.

Increased selling volume has accompanied recent price movements, lending additional weight to the potential bearish breakout. It's important to note that Brandt's analysis emphasizes possibilities rather than certainties, especially concerning Bitcoin's broader parabolic trend structure. His careful wording suggests he's exploring potential scenarios and not making definitive predictions about future price movements.