[ccpw id="39382"]

HomeCrypto NewsMarketBrandt Shows Bitcoin Has Violated Its Parabolic Advance, Major Correction Looming?

Brandt Shows Bitcoin Has Violated Its Parabolic Advance, Major Correction Looming?

Date:

Written By:

Follow TheCryptoBasic

Market expert Peter Brandt warns of a looming Bitcoin price correction as the asset violates the parabolic advance pattern. 

The Bitcoin price has been experiencing a wild ride lately, exhibiting high volatility over the past few weeks. This has sparked concerns among investors and enthusiasts, with experts warning about the sustained negative momentum and potential downfalls.

Parabolic Advance Pattern Broken

Amid this downtrend, veteran trader Peter Brandt, in his latest X post, raised concerns over the Bitcoin price’s potential trajectory. 

- Advertisement -

He cited the cryptocurrency’s historical pattern of parabolic advances, often followed by notable corrections. The trader’s analysis is based on BTC’s recent violation of this parabolic advance trendline. 

Notably, Brandt argued that the cryptocurrency’s bull cycles have experienced “exponential decay,” indicating that each successive period has been marked by diminishing returns. 

According to the chart presented by Peter Brandt, the Bitcoin price history has been marked by periods of parabolic growth, highlighted by red lines. 

The chart indicates that each time BTC dropped below these lines, significant price declines followed. Specifically, the previous cycles have experienced declines of over 75% after breaching the parabolic trendline.

Bitcoin 1W Chart Peter Brandt
Bitcoin 1W Chart | Peter Brandt

For instance, in the 2010-2012 cycle, the BTC price rose to a high of nearly $20, from its post-launch low. Soon, this bull run was hit by a market correction, with the price eventually reaching $4. This downtrend was foreshadowed by the parabolic line’s breach

Another instance shown in the chart is the 2019-2021 cycle, where Bitcoin reached an all-time high of $67k, only to plummet to $16k in 2022. As the same pattern is being repeated in the 2023-2025 cycle, with the crypto currently diverging from its parabolic rise, a similar correction is likely to occur in 2026.

Market Implications: Is a Bitcoin Price Correction Ahead?

As of press time, Bitcoin is exchanging hands at $89,701, marking a marginal 0.45% dip in a day. Over the past week and month, the coin has seen more notable downticks of 1.5% and 6.4%, respectively. 

After hitting $92k recently, the Bitcoin price started plummeting, breaking its parabolic advance pattern. This bearish momentum has sparked concerns among traders and investors, with analysts, including Brandt, predicting a possible crash.

As per Peter Brandt’s analysis, the current Bitcoin cycle peaked at an all-time high of $126k in October. Based on this framework, BTC could undergo an 80% correction, placing the target at a severe low of $25k. 

However, analysts like CryptoBusy remain bullish about BTC’s potential future. The analyst believes that the Bitcoin price’s pullback into the Asian open is part of the broader narrative of fading year-end liquidity. 

As the price has returned to test the multi-year trendline, BTC is likely to continue its upward momentum, according to CryptoBusy. This current trendline is noteworthy as it has served as a major support for higher lows since 2023.

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.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

More from Author

Latest Stories

Shiba Inu Forecast for Jan 12: Will SHIB Fall Lower to Find a Floor?

Shiba Inu faces a pullback as it tests key support levels, with mixed market sentiment and futures flows indicating uncertainty. Shiba Inu (SHIB) has encountered...

Dogecoin Price Analysis for Jan 12: DOGE Must Close Above This Crucial Resistance

Dogecoin shows resilience but must close above key resistance to confirm a bullish reversal. Dogecoin has shown resilience, holding steady above $0.138 despite the latest...

Bitcoin Forecast for Jan 12: Here Are Key Resistance and Support Levels to Watch

Bitcoin shows resilience amid market tensions, with key resistance and support levels defining its next potential move for January 12. Specifically, Bitcoin (BTC) rose 1.3%...

Robinhood Markets Now Put a 14% Chance Bitcoin Claims $150K Before June 2026

The prediction markets at Robinhood now present a 14% chance of Bitcoin reaching the $150,000 milestone before June 2026. While Bitcoin (BTC) saw five consecutive...

Ethereum Price Prediction for Jan 9: Can ETH Break the $3,297 Fib Resistance Level?

Ethereum needs to break the $3,297 Fibonacci resistance level, with mixed short-term performance and institutional interest fueling market optimism. As of January 9, Ethereum (ETH)...

Ethereum Analysis for Jan 7: Can Ethereum Close Above $3,303 Overhead Resistance?

Ethereum is facing key resistance, with strong bullish momentum, while liquidation data highlights ongoing market volatility. The first week of 2026 has seen Ethereum (ETH)...

Biggest Enemy of an XRP Holder is Time, Not Price

A market analyst has suggested that time remains the biggest enemy to an XRP holder, not price action, expressing confidence in an eventual rally. XRP...

XRP Price in 2026 as New 4Chan Predicts BTC New All-Time High This Year

New anonymous predictions on 4chan have presented a possible 2026 peak for Bitcoin, which could impact altcoins like XRP. The crypto market started the year...

Shiba Inu Forecast for Jan 12: Will SHIB Fall Lower to Find a Floor?

Shiba Inu faces a pullback as it tests key support levels, with mixed market sentiment and futures flows indicating uncertainty. Shiba Inu (SHIB) has encountered...

Shiba Inu Forecast for Jan 9: Where Next After SHIB Tests Weekly Bollinger Band Resistance?

Shiba Inu tests the weekly Bollinger Band resistance, with positive short-term momentum, but faces key resistance ahead. The Shiba Inu (SHIB) price chart for January...

Dogecoin Price Analysis for Jan 12: DOGE Must Close Above This Crucial Resistance

Dogecoin shows resilience but must close above key resistance to confirm a bullish reversal. Dogecoin has shown resilience, holding steady above $0.138 despite the latest...

Dogecoin Analysis for Jan 8: Can DOGE Bulls Beat the Bears at $0.168

Dogecoin faces resistance at important levels, with an analyst noting that bullish momentum is building up. The Dogecoin (DOGE) price chart shows a noticeable decline...

Guides