The legendary trader Peter Brant, with over five decades of experience in financial markets, provided a shocking market prediction suggesting that the price of Bitcoin could drop to $40,000.
This comes at a time when the currency is moving within a volatile range between $86,000 and $93,000, while it has not yet managed to surpass the critical resistance levels at $93,000 with the opening of December.
Brant based his analysis on the long-term price channel which, according to him, has outlined all Bitcoin cycles since 2013.
He explains that the currency this year has not reached the upper limit of the channel, which is something that has occurred before and has always ended with the price retreating to the lower limit.
This range currently starts from levels below $70,000 and extends to the mid $40,000 area, making this drop a realistic target for him rather than a shocking number.
This analysis coincided with a sharp decline in Bitcoin from about $92,000 to levels of $86,000, causing the currency to lose most of the gains it built at the beginning of the week.
Brant adds that this type of movement usually occurs when buyers lose control near pivotal levels.
And with the price unable to regain the level of $93,000 on the monthly frame, the pattern shifts from a healthy trend to a precarious one.
In response to those who doubted his prediction, Brant reminded them that he has relied on the same model for over 10 years — which has tracked all major peaks and sharp corrections during previous cycles.
According to this model, if Bitcoin fails to reach the upper limit of the channel, it often tends to visit the lower limit, making the $40,000 area a natural part of the price path, not a catastrophic scenario.
Brant believes that the recent drop, along with the absence of a positive monthly close and the weakness of the movement structure, are all indicators aligning with his expectation.
He asserts that the chart does not predict a comprehensive collapse but simply indicates that the $40,000 range remains a logical point within the current cycle if the current levels do not hold.
