Bitcoin's Potential Plunge: A 50% Chance It Falls Below $40,000
Seasoned trader Peter Brandt has recently raised alarms regarding the possible movement of Bitcoin (BTC), suggesting there's a 50% probability that the cryptocurrency could dip below $40,000 within this cycle. On the social media platform X, Brandt predicts that Bitcoin might experience a decline of over 35% from its current value by the end of next year.
Brandt emphasizes, "I believe there is a 50% chance BTC visits sub-$40,000 before the last half of the halving plays itself out." This speculative comment has captured the attention of market watchers and traders alike, as they wonder what might unfold in the cryptocurrency markets.
Understanding the Inverted Right Angled Broadening Triangle
Adding weight to his prediction, Brandt suggests Bitcoin's price action is forming a specific pattern known as an inverted right angled broadening triangle. This technical chart pattern was first introduced by Richard W. Schabacker in his 1934 book, ‘Technical Analysis and Stock Market Profits.’
The pattern, also referred to as a falling broadening wedge, typically signals a potential bullish reversal if the lower trendline holds as support. This pattern was previously observed during Bitcoin’s dramatic drop at the onset of the COVID-19 pandemic, suggesting that a similar event might be on the horizon.
Bitcoin, currently trading at $61,306, has seen a notable rise of 10.7% in the last 24 hours, indicating a volatile period ahead.
Solana vs. Ethereum: The Emerging Winner
Additionally, Brandt's insights extend to the ongoing battle between Solana (SOL) and Ethereum (ETH). He presents a chart that demonstrates the likelihood of Solana outperforming Ethereum in the months to come. According to Brandt, the trend favoring Solana may persist due to fundamental differences between the two blockchain platforms.
Brandt critiques Ethereum as "cumbersome, expensive, flawed, and falsely claiming to be decentralized," while praising Solana for being "user-friendly with a great foundation." He confidently predicts, "SOL should gain 100% on ETH in months ahead."
At the time of writing, the SOL/ETH trading pair is valued at 0.06059 BTC (approximately $160), showing a slight decline over the last 24 hours. This comparison underlines the dynamic competition within the decentralized finance (DeFi) space and highlights the potential shifts in digital asset leadership.
