TLDR
Peter Brandt identifies potential Bitcoin pattern suggesting a drop to $84,000 before possible surge to $150,000
The pattern, called “bump, hump, slump and dump,” was seen before Bitcoin’s rise from $50,000 to $100,000 last year
Brandt warns of possible deeper drop to $76,000 if bearish head-and-shoulders pattern completes
Bitcoin currently trading at $94,625
XRP breaks out of six-week consolidation above $2.38, described as “leader of the pack”
Veteran trader Peter Brandt has shared his latest analysis of Bitcoin’s price movement, suggesting the cryptocurrency might experience a substantial drop before potentially rallying to $150,000. Brandt, who has over 771,500 followers on X (formerly Twitter), bases his prediction on a pattern he calls “bump, hump, slump and dump.”
The pattern Brandt identifies mirrors similar market behavior witnessed last year when Bitcoin surged from $50,000 to over $100,000. According to his analysis, Bitcoin might first decline to around $84,000 before starting its upward movement.
Bitcoin currently trades at $94,625, but Brandt’s analysis suggests multiple possible scenarios. He warns that if certain technical patterns play out, the price could drop even further, potentially reaching $76,000.
The big question in my mind is whether Bitcoin will get one more dump (or more lengthy congestive chop) before the pump.
Remember, markets generally do not sour until retail traders get worn out $BTC pic.twitter.com/r2y0paBe4z
— Peter Brandt (@PeterLBrandt) January 11, 2025
The veteran trader points to a bearish head-and-shoulders pattern forming on Bitcoin’s daily chart. This technical formation typically indicates weakening momentum and could trigger a deeper price correction if Bitcoin breaks below the pattern’s support level, which currently sits near $90,000.
Brandt explains that Bitcoin head-and-shoulders patterns historically follow one of three paths: they either complete and move to their target, fail and create a bear trap, or develop into a larger pattern. This analysis provides traders with multiple scenarios to watch for.
In his social media posts, Brandt emphasizes the role of market psychology in Bitcoin’s price movements. He notes that markets typically don’t advance until retail traders become exhausted, suggesting that the potential downturn might serve to shake out less committed investors.
The analysis comes at a time when Bitcoin has shown increased volatility following its recent all-time highs. Trading volumes across major exchanges have remained steady, indicating sustained market interest despite the price uncertainty.
Market data shows that institutional involvement in Bitcoin trading has maintained consistent levels throughout this period. This sustained institutional presence suggests ongoing professional interest in the cryptocurrency market regardless of short-term price fluctuations.
Meanwhile, Brandt has also turned his attention to XRP, the payments-focused cryptocurrency. His technical analysis indicates that XRP has successfully broken out of a six-week consolidation period, pushing through a diagonal resistance level at $2.38.
XRP’s price movement has been particularly notable, with the cryptocurrency trading at $2.53 at the time of the analysis. Brandt refers to XRP as the “leader of the pack,” suggesting its price action might offer clues about the broader cryptocurrency market’s direction.
Trading volumes for XRP have increased following its breakout from the consolidation pattern. This increased activity supports the technical breakthrough observed in the price charts.
The cryptocurrency’s move above the $2.38 resistance level represents a technical achievement that traders often view as confirmation of renewed buying pressure. This breakthrough follows weeks of price compression within a narrowing range.
Technical indicators for XRP show strengthening momentum following the breakout. The volume profile during this move suggests genuine buyer interest rather than a temporary price spike.
Recent trading data indicates that XRP’s price action has maintained stability above the previous resistance level, now potentially acting as support. This price behavior aligns with traditional technical analysis principles regarding resistance levels converting to support after successful breakouts.
The current market structure shows Bitcoin trading within a defined range while participants await clarity on its next directional move. Trading volume patterns suggest active participation from both institutional and retail traders.
The post Peter Brandt Predicts Bitcoin Price Movement: Potential Drop to $84,000 Before Rally appeared first on Blockonomi.
