Bitcoin traded relatively flat on Wednesday after rebounding from an earlier drop this week. The leading cryptocurrency had climbed to roughly $93,810 following a low near $84,500, with sentiment still in the “fear” zone at 28.
Despite the short-term recovery, veteran analyst Peter Brandt warned on Monday that Bitcoin could suffer a correction of up to 75% before resuming a longer-term uptrend. In a tweet, Brandt based his outlook on a pattern he calls the “dominant parabolic advance,” a trendline visible on weekly charts that has accompanied prior Bitcoin bull markets. According to him, breaches of that parabolic line have historically been followed by severe corrections exceeding 75%.
Brandt pointed to past cycles: after the 2011 rally BTC fell about 86%, the 2013 bull run ended with an 80% decline, the 2017 peak preceded a 77% drop, and the 2021 cycle saw a roughly 74.2% correction. “There have been five major bull market cycles in BTC since inception. In all previous cycles, the violation of the dominant parabolic advance has been followed by a 75%-plus correction — NO EXCEPTIONS!!” he wrote, arguing the pattern’s historical consistency.
The current market shows similarities to past cycles. Bitcoin had been advancing above the parabolic line since recovering from the FTX fallout in late 2022, but recent volatility pushed price below that trendline, raising the possibility of a deep correction. If a 75% retracement occurred from a recent $103,000 peak, Bitcoin could fall to roughly $25,750.
Not all analysts are bearish. Michael van de Poppe noted the recovery is encouraging and said Bitcoin needs to hold above $92,000 to keep the rally intact; a sustained move could see BTC test $100,000 and potentially reach a new all-time high.
Broader factors affecting sentiment include the end of the Federal Reserve’s quantitative easing, expected rate cuts that may add liquidity, institutional support from major U.S. financial firms, and a strong realized price among highly active wallets—each helping to stabilize short-term dynamics.
At press time, BTC traded around $90,543, down about 2.24% over the past 24 hours.
