dailyhodl.com
Seasoned trader Peter Brandt is warning there’s a 50% chance that Bitcoin (BTC) plummets below $40,000 this cycle.
Brandt tells his 734,000 followers on the social media platform X that Bitcoin could possibly plummet more than 35% from its current value before the end of next year.
“I believe there is a 50% chance BTC visits sub-$40,000 before the last half of the halving plays itself out.”
Brandt also suggests that Bitcoin’s price action this year may be forming an inverted right angled broadening triangle, similar to Bitcoin’s black swan event in 2020 at the start of the Covid-19 pandemic. The pattern is also referred to as the falling broadening wedge, which could lead to a bullish reversal over time if the lower trendline is held as support.
“The inverted right angled broadening triangle was coined by Richard W. Schabacker in his 1934 book ‘Technical Analysis and Stock Market Profits.’ Also shown is the chart of Bitcoin. While the upper boundary is not horizontal, I still think the two match up well.”
Bitcoin is trading for $61,306 at time of writing, up 10.7% in the last 24 hours.
Next up, Brandt shares a chart that indicates smart contract platform Solana (SOL) will decisively outperform its rival Ethereum (SOL/ETH) in the coming months and notes the trend may continue due to key differences between the two networks.
“In the battle between SOL and ETH it was inevitable there would be a clear winner.
- ETH: cumbersome, expensive, flawed, claims to be decentralized when its not.
- SOL: user friendly, great foundation.
SOL should gain 100% on ETH in months ahead.”
SOL/ETH is trading for 0.06059 BTC ($160) at time of writing, down slightly in the last 24 hours.
Generated Image: Midjourney