Veteran trader Peter Brandt has drawn parallels between Bitcoin’s current price chart and the 1970s soybean market, warning of a potential steep decline if history repeats itself.
Brandt sees broadening top pattern
Brandt stated:
“Bitcoin is forming a rare broadening top on the charts. This pattern is famous for tops.”
He noted that in the 1970s, soybeans formed a similar pattern before undergoing a 50% collapse.
Brandt added that a similar outcome for Bitcoin could put corporate holders like MicroStrategy under significant pressure, as its stock price has already fallen over 10% in the past 30 days amid declining net asset values.
Diverging analyst outlooks
While Brandt warns of a possible drop to $60,000, other industry figures remain optimistic.
BitMEX co-founder Arthur Hayes and others believe Bitcoin still has a chance for a major rally this cycle, with price targets as high as $250,000.
According to data from CoinGlass, the fourth quarter is historically Bitcoin’s strongest, with an average return of 78.49%.
October is also seen as a seasonally strong month for Bitcoin performance.
Sentiment shifts to extreme fear
Despite bullish seasonality, the bitcoin fear and greed index showed “Extreme Fear” with a score of 25, following recent market volatility and a tariff scare linked to US President Donald Trump.
This has left some analysts more cautious, but others see potential for a sudden recovery if macroeconomic data improves.
21Shares investment specialist David Hernandez commented:
“Bitcoin is coiled and ready to spring upward.”
Meanwhile, Michaël van de Poppe, founder of MN Trading Capital, pointed to a recent 5.5% drop in gold as a possible sign that capital could rotate into Bitcoin and altcoins.
