The world’s biggest cryptocurrency, Bitcoin, has been continuously going through a consolidation phase for almost 2 months, fluctuating between $60,700 and $71,550. Amidst this, Peter Brandt, a prominent chart expert and CEO of Factor LLC, who is renowned for his bullish stance on Bitcoin, seems to have shifted his position, suggesting that the cryptocurrency’s upward momentum may have peaked.
Will Bitcoin hit $200,000 level?
Brandt previously predicted a bullish cycle extending into 2025, with prices potentially reaching $200,000. However, his latest analysis introduces the concept of “exponential decay,” suggesting a different path for Bitcoin’s price movement.
According to Brandt, Bitcoin typically follows four-year cycles, with each cycle being around 80% less potent than the previous one. He notes that if this trend continues, Bitcoin’s recent peak of $73,835 might already align with historical patterns. Brandt’s past predictions, including Bitcoin’s collapse in 2018, lend credibility to his analysis. He highlights the critical magnitude of Bitcoin’s bull runs over time, with the recent rally showing a 79.1% increase from the bear market low in November 2022.
Despite acknowledging the unpredictable nature of future outcomes, Brandt points to Bitcoin’s quadrennial mining reward halvings as potential catalysts for bullish sentiment. The recent halving, which occurred in April, could impact market dynamics.
While many in the crypto community anticipate a bullish resolution to Bitcoin’s consolidation phase, Brandt urges caution. He suggests a potential peak in the range of $140,000 to $160,000 by 2025 but remains vigilant, emphasizing the importance of monitoring the exponential decay theory.
Bitcoin’s technical analysis and key levels
Following all this, Bitcoin is currently trading near $62,400, and in the last 24 hours, it experienced nearly 2% of downside momentum. If we look at the performance of Bitcoin over a longer period, in the last 7 days, Bitcoin experienced nearly 6% of downside momentum. Whereas, in the last 30 days, it experienced over 10% of downside.
However, technical analysis is still neutral; currently, it consolidates in a tight range between $60,700 and $71,550. Looking at these charts, there is a possibility that it can experience either upside or downside. If Bitcoin on the daily timeframe closes below the $60,700 level, then there is a high possibility that it can revisit its support level of $48,000. However, if Bitcoin on the daily timeframe closes above $71,550, then there is a high possibility that Bitcoin will create a new all-time high and also hit the $80,000 level.
