
Jakarta, Pintu News – Peter Brandt, a prominent commodities trader, recently issued a warning that Bitcoin could fall dramatically to $25,240 after its parabolic pattern was disrupted. This analysis is based on the observation that each upward cycle of Bitcoin’s price has weakened over time, signaling that the cryptocurrency is entering a phase of maturity.
The parabolic pattern that has identified a period of exponential growth for Bitcoin now appears to have broken. According to Brandt, this is an indication that Bitcoin’s upward price trend has come to an end. In the chart, which uses a logarithmic scale, there are four pink curved lines that signify the previous parabolic phases.
Each time this line is breached, Bitcoin experiences a sharp decline. By the end of the fourth curve, the Bitcoin price has dropped below the parabolic line. This is often interpreted as a sign that market support has disappeared.
Historically, every time Bitcoin went off its parabolic curve, the currency lost around 80% of its highest value. This happened in 2011, 2013, and 2017, with dramatic declines following each time.
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Brandt emphasizes that each cycle of Bitcoin price increases tends to be weaker than the previous cycle. This suggests that Bitcoin is moving towards a phase of maturity, where its volatility decreases and its growth becomes more stable. This phenomenon can be explained by the theory that as market adoption and maturity increase, price fluctuations tend to be more manageable.
This understanding is important for investors and market watchers as it indicates a fundamental change in the way Bitcoin behaves in the market. If this trend continues, we may see longer periods of price consolidation before another significant spike.
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If Brandt’s prediction proves to be correct and Bitcoin falls to $25,240, this will be an important evaluation point for Bitcoin investors and users. This drop would not only affect Bitcoin holders but could also impact the crypto market as a whole. A loss of trust or confidence could trigger a wider mass sell-off.
However, this could also be an opportunity for investors looking for a lower entry point. History has shown that after every crash, Bitcoin always manages to recover and reach a higher value than before. Therefore, this drop could be seen as a normal cycle in Bitcoin’s long-term evolution.
While predictions of a drastic drop in the price of Bitcoin may cause concern, it is important to understand that these kinds of fluctuations are part of the natural cycle of a young cryptocurrency. Investors and users should prepare themselves for possible volatility while keeping a close eye on market developments to make informed decisions.
Peter Brandt is a leading commodities trader known for his analysis of price patterns in the market, including crypto markets like Bitcoin (BTC).
A parabolic pattern in the context of Bitcoin refers to a period of very rapid and exponential price growth, depicted as an increasingly steep curved line on the price chart.
Bitcoin (BTC) has experienced large drops several times, including in 2011, 2013, and 2017, where each time the price fell by about 80% of its highest value.
Bitcoin’s price drop could affect investor confidence and the overall dynamics of the crypto market, but it could also provide opportunities for investors to buy at lower prices.
According to the analysis, the Bitcoin bull cycle has become less strong over time, suggesting that Bitcoin is moving towards a phase of maturity with lower volatility and more stable growth.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
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