Bitcoin traded largely flat on Wednesday after bouncing from an earlier dip this week. The largest cryptocurrency climbed to about $93,810 following a low near $84,500, while market sentiment remained in the ‘fear’ zone at 28.
Veteran trader and analyst Peter Brandt warned Monday that Bitcoin may undergo a severe correction — as much as 75% — before any sustained, longer-term advance resumes. Brandt based his warning on a weekly-chart pattern he calls the ‘dominant parabolic advance,’ a trendline that has accompanied previous Bitcoin bull markets. In his view, historical breaches of that parabolic line have been followed by deep corrections exceeding 75%.
He cited past cycles to illustrate the pattern: after the 2011 rally BTC fell roughly 86%, the 2013 bull run ended with an about 80% decline, the 2017 peak preceded a 77% drop, and the 2021 cycle saw roughly a 74.2% correction. Brandt argued these examples show consistency: every prior violation of the dominant parabolic advance was followed by a 75%-plus correction, with no exceptions.
The current price action bears some resemblance to those earlier cycles. Bitcoin had been riding above the parabolic trendline since its recovery from the FTX fallout in late 2022, but recent volatility pushed the price back below that line and reopened the possibility of a deep retracement. If a 75% decline occurred from a recent $103,000 peak, BTC could fall to roughly $25,750.
Not every analyst is bearish. Michael van de Poppe described the recent recovery as encouraging and said Bitcoin needs to hold above about $92,000 to keep the rally intact. If that level holds, he suggested BTC could retest $100,000 and potentially reach a new all-time high.
Several broader factors are also shaping sentiment. The Federal Reserve’s shift away from quantitative easing, expectations for future rate cuts that could add liquidity, growing institutional involvement from major U.S. financial firms, and a comparatively strong realized price among highly active wallets have all helped stabilize short-term dynamics.
At the time of reporting, BTC was trading around $90,543, down roughly 2.24% over the previous 24 hours. The market remains sensitive to both technical signals like the parabolic trendline and macro drivers that could either deepen a pullback or support a renewed advance.