Veteran trader Peter Brandt believes that a 75% Bitcoin crash is likely while drawing parallels from a 2022-like chart setup. Interestingly, Brandt drops this bomb at a time when BTC is actually showing strength, moving closer to $110K and gearing up for a fresh all-time high. The US CPI data on Wednesday could play a pivotal role in deciding the next trajectory for BTC.
Renowned market analyst Peter Brandt’s tweet today has sparked speculation of a probable Bitcoin crash in the making. While sharing a 2022-like setup on the technical charts, Brandt believes that BTC can collapse by a staggering 75% from here is history repeats. “Is Bitcoin ($BTC) following its 2022 script and setting up for a 75% correction?” asked Brandt.
The above chart shows BTC price performance across two different time frames, sharing short-term and long-term perspectives. The charts indicate Bitcoin is at a critical juncture where it could either break higher through resistance levels or potentially test the lower support zone.
Amid a broader crypto market rally, Bitcoin price has also bounced to $110K today with daily trading volume soaring 28.97% to $56.6 billion. But blockchain analytics platform Glassnode reported that derivatives market indicators are painting a picture of potential overheating in the short term.
Key warning signs include rising short liquidations, an increasing premium on the long side of trades, and growing open interest across derivative platforms. However, Glassnode notes that funding rates have shown only a modest uptick.
Whether investors will see a Bitcoin crash or not will depend on macro indicators and the upcoming US CPI numbers for May. Market analysts have been pointing out an inflation uptick, which could bring selling pressure in the market. Moreover, it could also delay and decision on Fed rate cuts at the upcoming FOMC meeting in mid-June.
However, the recent increase in Tether’s USDT supply by $1 billion could boost the prospects for the Bitcoin price rally, while providing an additional liquidity boost for the asset class.
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