Veteran trader Peter Brandt has issued a stark warning that Bitcoin (BTC) could be on the verge of a deep correction, potentially crashing by 80% from its all-time high to around $25,240. Brandt's analysis is based on historical market cycles, noting that Bitcoin's price has historically followed parabolic advances. He points out that the current parabolic structure has now been violated, as the price has fallen below its long-term parabolic support line on a logarithmic chart.
Historically, such a break has preceded severe drawdowns. Brandt cites examples from 2011, 2013, and 2017, where similar violations led to price declines of 80% or more. Applying this pattern to the current cycle, an 80% drop from Bitcoin's peak would target the $25,240 level. This warning comes as Bitcoin faces strong selling pressure, struggling to hold above $90,000 and facing rejection at the $93,000 resistance level.
The market is also bracing for significant macroeconomic events this week that could add further volatility. On Thursday, December 18, the U.S. will release Consumer Price Index (CPI) data for November, with forecasts pointing to a 3.1% year-over-year increase. This data could influence future Federal Reserve interest rate decisions. Furthermore, the Bank of Japan (BoJ) is expected to announce an interest rate decision on December 19. Market analyst Ted Pillows noted that the last three BoJ rate hikes were followed by 20-30% drops in Bitcoin's price, suggesting a potential drop to $70,000 if history repeats.
Despite the bearish outlook from Brandt, other market participants remain cautiously optimistic. Analyst Captain Faibik suggests that a breakout is "only a matter of time," but stresses that bulls must reclaim the $93,000 resistance to restore bullish momentum. Meanwhile, MicroStrategy CEO Michael Saylor has hinted at further Bitcoin purchases for the company's treasury, which already holds 660,524 BTC worth approximately $58.5 billion.
