Crypto analyst Tony Severino has revealed a historical bearish pattern that could send the Bitcoin price to as low as $42,000. This bearish outlook for BTC comes amid a rebound for the flagship crypto, with a recent surge above the psychological $90,000 level.
Bitcoin Price Risks 50% Drop To $42,000 Based On This Pattern
In an X post, Severino stated that the Bitcoin price likes to retrace to subwave 3/4 of wave 3/4 of its impulse. Based on this, the analyst indicated that BTC could crash to as low as $42,000 on wave C of this move to the downside. His accompanying chart showed that this decline could happen sometime at the start of next year.
This bearish Bitcoin price prediction comes amid BTC’s rebound above $90,000 following the end of quantitative tightening (QT) by the U.S. Federal Reserve. The flagship crypto has also rebounded amid optimism of another rate cut at this month’s FOMC meeting. CME FedWatch data shows there is almost a 90% chance that the Fed will lower rates again this month.
However, despite these macro positives for the Bitcoin price, analysts such as Tony Severino have suggested that BTC is in a bear market and is likely to trend lower in the coming months. In an X post, he highlighted the BTC monthly chart, suggesting it showed a subtle volume breakout that confirmed a “not-so-subtle” trendline breakdown.
Meanwhile, market technician JT described statements that the QT ending is bullish for the Bitcoin price as being a “fallacy.” He alluded to the possibility that the Bank of Japan (BOJ) may hike rates this month as one of the stressors to liquidity beyond QT.
Peter Brandt Predicts Drop To Mid $40ks
In an X post, veteran trader and analyst Peter Brandt predicted that the Bitcoin price could drop to mid $40,000. He stated that the upper boundary of the lower green zone starts below $70,000 and that the lower support boundary is in the mid $40,000. Notably, Brandt had previously predicted that BTC could drop to around $50,000 before it then rallies to around $200,000 in the next bull market.
The veteran analyst noted that there have been five major bull market cycles for the Bitcoin price since its inception. He further stated that in all previous cycles, the violation of the dominant parabolic advance has been followed by a 75% plus correction with no exception. As such, he expects BTC to undergo another significant correction in this cycle, potentially dropping below $50,000.
At the time of writing, the Bitcoin price is trading at around $93,000, up almost 7% in the last 24 hours, according to data from CoinMarketCap.
