Peter Brandt, a respected figure in the trading community, recently warned that Bitcoin could face a dramatic price drop, drawing comparisons to its 2022 chart setup.
His remarks come at a time when. Bitcoin has seen a notable 1.87% price increase in the last 24 hours and a 3.61% rise over the past week, now priced at $109,192.
Despite the positive momentum, Brandt’s technical analysis suggests the market could be gearing up for a major reversal.
Bearish Reversal Concerns
According to Brandt, the current setup mirrors the 2022 scenario, where Bitcoin underwent a substantial decline. He points out the presence of a Double Top pattern, a bearish technical formation that indicates potential price reversal.
Is Bitcoin $BTC following its 2022 script and setting up for a 75% correction? Doesn't hurt to ask this, does it? pic.twitter.com/BAywkhSwgy
— Peter Brandt (@PeterLBrandt) June 10, 2025
In addition, the Exponential Moving Averages (EMA) are also signaling a downward trend, further suggesting that the market may be heading for a correction.
Technical Indicators Reflect Bearish Sentiment
The chart provided by Brandt highlights the emergence of a Double Top pattern, which typically signals a bearish reversal in price action. For context, the first top formed when BTC claimed highs above $108,000 in December 2024 and January 2025.
However, the asset faced a considerable decline below $100,000 after this peak. Interestingly, following the recovery that began in April, Bitcoin soared to a new all-time high near $112,000 last month, forming the second top.
Notably, this Double Top pattern mirrors a similar setup seen in 2022. For context, Bitcoin hit an initial top of $65K in April 2021. After this, it dropped and then recovered to a second top of $69K in November 2021, marking its ATH. After the $69K peak, Bitcoin collapsed considerably, leading to the bear market. Brandt’s chart suggests another drop could be looming again.
Moreover, the 9-period EMA crossing below the 21-period EMA has historically marked the beginning of a downward trend, further reinforcing Brandt’s concerns. These technical indicators have led some traders to anticipate a potential 75% crash, should history repeat itself. A 75% decline from $109,192 would indeed bring Bitcoin’s price to around $27,298.
Derivatives Data Shows Diverging Trends
Amid Brandt’s warnings, Bitcoin’s derivatives data paints a more complex picture. Bitcoin’s volume has surged by nearly 30%, now at $100.33 billion, indicating heightened market activity. This rise in volume typically precedes significant price movements. Moreover, open interest in Bitcoin has also increased by 1%.
The Binance BTC/USDT Long/Short ratio of 0.5501 and the OKX BTC Long/Short ratio of 0.53 both indicate that more traders are holding short positions than long positions, suggesting a bearish sentiment in the market on these exchanges.
Bitcoin Investment Products See Outflows
Meanwhile, Bitcoin’s investment products have seen modest outflows. Over the past week, Bitcoin faced $56.5 million in outflows, signaling a potential shift in investor sentiment. This comes as Ethereum has experienced strong inflows, leading the way with $296.4 million.
The continued outflows from Bitcoin investment products, along with short-Bitcoin products, may further suggest that market participants are adjusting their expectations amid ongoing uncertainty.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
