Peter Brandt warns: Huge problem for Bitcoin price if it breaks below this critical level

Well-known trader Peter Brandt has made a major, ominous prediction for the Bitcoin price. According to him, BTC is currently in a crucial phase.

Brandt has identified a pattern known as the inverted expanding triangle, also known as a “megaphone” pattern. This pattern often indicates increasing volatility, with price swings on either side becoming increasingly violent. This could signal an exciting period ahead for BTC.

$46,000 is crucial

Peter Brandt predicts that Bitcoin will likely test the $46,000 support level. During the launch of the Bitcoin ETFs in early January, this level acted as a major resistance level. It would not be a surprise if this same level soon becomes a crucial turning point. If this level holds, the price could potentially rise again. However, if Bitcoin falls below this level, things look bad for the price.

The inverted expanding triangle pattern typically indicates a situation where selling pressure is greater than buying pressure. This pattern, which is characterized by increasingly wide price swings, suggests that Bitcoin will face significant volatility in the near future. According to Brandt, this could lead to sustained downward pressure on the price.

This is called an inverted expanding triangle or a megaphone. A test of the lower boundary would be to 46,000 or so. A massive thrust into new ATHs is required to get this bull market back on track $BTC
Selling is stronger than buying in this pattern pic.twitter.com/ekDZUJXXgd

— Peter Brandt (@PeterLBrandt) September 5, 2024

While $46,000 is a key support line, a break through it could signal a deeper correction. This could result in a drop to the lower $40,000 levels, in line with the prediction of Markus Thielen of 10x Research.

“I expect Bitcoin price to drop to the low $40,000 levels, after which we will see another major price increase,” Thielen said in an Aug. 7 report.

What does it take to turn things around?

On the other hand, a strong bounce around the $46,000 level could propel the market back higher. However, Brandt believes a convincing move higher is needed to restore confidence in the bull market. “A strong rally to new all-time highs is needed to revive the bull market,” he says.

At the time of writing, the Bitcoin price is around $56,000. Since March, the price has been in a clear downward trend.

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