Renowned analyst Peter Brandt, known for his 50-year track record in market analysis, recently unveiled a Bitcoin (BTC) chart that could unsettle investors. After a five-wave rally, the weekly outlook shows a broken curve, indicating two potential landing zones significantly below current levels. According to Brandt, these areas are approximately $81,852 and $59,403.
Price Surge’s Hidden Costs Under Fed’s Shadow
Brandt interprets his downward targets not as a panic indicator but as a natural “cleanup” after an overly extended rally. He believes the market has surged too far ahead while pricing in a never-ending interest rate cut narrative. His assessment suggests that the late 2025 period might resemble the end of 2021, but with a notable role reversal. While economic tightening was the buzzword back then, now the focus has shifted to easing.
Many assets are currently trading at inflated prices, driven by the assumption that interest rates will drop rapidly. The cryptocurrency market has already factored in future cuts with the same reasoning. Brandt indicates that if the Fed adopts a “cold” tone in its next meeting, corrections could become inevitable.
Institutional Moves May Accelerate Sell-Off
Brandt’s forecast is further supported by the possibility that institutional investors might change strategies. Companies like Strategy, known for their substantial Bitcoin reserves, might reorganize their positions if liquidity tightens. Such a move could expedite the downturn process already depicted in the analyst’s chart.
Although the S&P 500 index dropped over 20% within the year, it managed a swift recovery. In contrast, Bitcoin has continued its climb along an overheated curve. According to Brandt, it is clear that this curve no longer provides support. Therefore, a retreat to the $81,000–$59,000 range should be viewed not as an exaggerated scenario but as a necessary step for the market to deflate its excessive momentum.