Legendary Trader Warns: Bitcoin Could Plunge Below $50,000 If These Key Levels Break

Renowned trader Peter Brandt recently provided insights on the Bitcoin price potential market movements, projecting a challenging period followed by a significant rally.

This analysis comes as Bitcoin’s current trading behavior exhibits signs that might concern short-term investors.

Bitcoin’s Precarious Path: Potential Drop and Subsequent Rally

Brandt’s analysis indicates that if Bitcoin breaks the $65,000 threshold, it could trigger a further drop to around $60,000, potentially dipping as low as $48,000.

So far, Bitcoin has struggled to sustain momentum above the $70,000 mark, showing a decline of 5.6% over the past week to a current value of $67,170.

Bitcoin (BTC) price chart on TradingView

Despite the somewhat grim short-term outlook, Brandt identifies a silver lining with the potential for substantial recovery. His analysis outlines the immediate risks and hints at a rebound, which he terms the “pump” phase following the “dump.”

According to Brandt, this pattern typifies the volatile nature of cryptocurrency markets and could serve as a pivotal moment for investors.

Earlier in the year, he made similar observations when Bitcoin was trading at $42,300, suggesting these cycles are common features of bull markets and play a crucial role in distinguishing between novice traders and experienced investors.

JPMorgan Cautions On Bitcoin Touted ETF Demand

Meanwhile, financial institutions like JPMorgan have scrutinized the broader implications of market dynamics on Bitcoin’s valuation. JPMorgan has recently highlighted concerns regarding the overestimation of demand for Bitcoin ETFs.

Their analysis suggests that much of the recent inflow into Bitcoin ETFs does not represent new capital but rather a rotation from traditional cryptocurrency exchange wallets to “more regulated and seemingly secure” ETFs.

This shift has been driven by “cost-effectiveness, regulatory protection, and deeper liquidity” ETFs offer over conventional crypto wallets.

Moreover, following the introduction of spot ETFs, there has been a noticeable decline in BTC reserves on exchanges, indicating that while ETFs are becoming a preferred vehicle for Bitcoin exposure, the overall increase in institutional demand might not be as strong as previously thought.

JPMorgan estimates that actual net flows into Bitcoin ETFs since January stand at about $12 billion, challenging the bullish narrative of massive institutional demand.

Featured image created with DALL-E, Chart from TradingView

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest posts

post-thumbnail
Tornado Cash Co-Founder Released From Prison, Plans to Focus on Appeal
The post Tornado Cash Co-Founder Released From Prison, Plans to Focus on Appeal appeared first on Co...
READ MORE
post-thumbnail
Coinbase Adds POPCAT, PENGU and MORPHO Tokens to Listing Roadmap
The post Coinbase Adds POPCAT, PENGU and MORPHO Tokens to Listing Roadmap appeared first on Coinpedi...
READ MORE
post-thumbnail
Franklin Templeton Updates Crypto ETF Filing, Eyes Future Token Additions with SEC Approval
The post Franklin Templeton Updates Crypto ETF Filing, Eyes Future Token Additions with SEC Approval...
READ MORE
post-thumbnail
Maryland Introduces ‘Strategic Bitcoin Reserve Act’ in Push for State Crypto Adoption
The post Maryland Introduces ‘Strategic Bitcoin Reserve Act’ in Push for State Crypto Adoption a...
READ MORE
default post thumbnail
Ethereum Is Consolidating After The Flush Last Weekend – The Calm Before A Big Move?
Ethereum experienced one of the most aggressive sell-offs in its history on Monday, plunging 25% in ...
READ MORE
default post thumbnail
Dogecoin Starts Out February with 23% Crash, What Does Historical Data Point To?
The Dogecoin price has started out this month with a crash, sparking a bearish sentiment among DOGE ...
READ MORE
Read more posts