Bitcoin price has crashed below $85,000, and one prominent day trader warns that ot may crash below $70,000 soon. In addition to its bearish technicals, Bitcoin is contending with low whale demand and macro headwinds ahead of Donald Trump’s Liberation Day next week.
Peter Brandt Warns that Bitcoin Price Could Crash
One of the most popular traders on X has predicted that the Bitcoin price could implode below $70,000 in the coming days. Such a move would point to a 18% drop from the current level.
Peter Brandt, who has authored a popular book on technical analysis, said that it would not be unreasonable for Bitcoin to crash. He said this in response to another trader who pointed to the chart below.
This chart shows that Bitcoin price has faced substantial resistance around the $90,000 mark.
It has failed to move above that level several times in March. At the same time, the coin has formed a rising wedge pattern, whose two lines have converged near the key resistance at $89,000. This resistance was notable since it was the neckline of the double-top pattern at $108,675.
Therefore, a combination of a double-top, a break-and-retest, a death cross, and a wedge pattern points to a bearish BTC price forecast. In this case, the initial target would be at $76, 430, the lowest level this month. Such a move would point to more downwards, potentially to last March’s high of $73,827 and then below $70,000.
The bearish Bitcoin outlook will become invalid if the Bitcoin price rises above key resistance levels at $90,000, then $95,000, and $100,000.
BTC At Risk Ahead of Options Expiry
There are a few potential bearish catalysts for the Bitcoin price. First, options worth over $16.5 billion will expire on Friday, with the maximum pain being at $85,000. Historically, Bitcoin experiences some intense volatility when there is such a big expiry.
Further, there are signs that whales are levering, meaning that less Bitcoins is moving to the derivative market. This feature often signals a reduced risk appetite, which is often a bearish catalyst for Bitcoin.
From a macro level, Bitcoin price may crash ahead of next week’s Liberation Day, when Donald Trump will introduce his reciprocal tariffs. These will be huge tariffs targeting friends and foes of the United States.
In the short term, these large tariffs will be bearish as fear spreads in the market. However, the tariffs may trigger a recession in the long term, triggering a monetary and fiscal response, including stimulus cash and low interest rates. Bitcoin does well in an era of easy money.
Frequently Asked Questions (FAQs)
There is a risk that Bitcoin price will plunge below $70,000 now that it has formed numerous bearish patterns on the daily chart.
It has formed a rising wedge, a break-and-retest, a death cross, and a double-top pattern on the daily chart.
Historically, the quarterly options expiry often leads to volatility ahead and shortly after the event.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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