As Bitcoin continues to slip, hitting severe lows, the community remains anxious about its bottom in this cycle. However, veteran trader Peter Brandt believes that the market losses will not go beyond his expected limit. Brandt states that even if BTC follows the “banana peel” drop, mimicking past cycles, $42,000 could mark the bottom and act as a key support level.
Peter Brandt Sees Limited Downside Despite Sharp Bitcoin Correction
In a recent X post, Peter Brandt, a renowned trader and chart analyst, shared his bold prediction for the Bitcoin price. Despite the currently experiencing sharp price correction, Brandt believes that the crypto’s downside is limited.
Peter Brandt refers to the current downturn as a “banana peel” drop. By the term, he means that the correction is a sudden, slippery move that catches traders off guard. The trader points to similar past patterns seen in Bitcoin bear markets. In such conditions, BTC tends to fall sharply and quickly before finding a bottom.
While traders and investors fear a sustained downtrend, without knowing where it will lead, Peter Brandt predicts that the current Bitcoin correction may not be too deep. Reinforcing his statement, he cited past cycles where the Bitcoin price managed to hold at levels higher than many expected.
According to Peter Brandt, the cryptocurrency can find a strong support near $42k, even if it follows the historical path and dips further. He asserts that BTC is already near the support level. His tweet read,
“If Bitcoin digs into the Banana peel as deeply as in past bear market cycles, then the bulls should not need to suffer too far south of $42,000 We are a hop, skip and jump from there.”
Bitcoin Price Slips Below $65K
The BTC price is currently under severe pressure, in line with the broader crypto market crash. While the global market has dipped to $2.24 trillion, down by nearly 8%, BTC is trading below $65k. Currently priced at $64,820, marking notable declines of 8%, 21%, and 30% over the past day, week, and month, respectively.
When BTC traded near the $74k mark, Peter Brandt lowered his BTC price target to $54k from the initial projection of $58k. Now, he has further lowered the range, with $42k projected as a potential support level.
As CoinGape reported recently, the current downturn is primarily driven by the rising geopolitical tensions. Amid fears of possible U.S. military action against Iran, traders are moving funds from crypto to traditional assets, contributing to a market sell-off.
