 ▲ Bitcoin (BTC) |
Legendary trader Peter Brandt has compared Bitcoin’s (BTC) sharp decline to a “banana peel,” warning of the possibility of further downside toward the $42,000 level and drawing intense attention from investors.
According to a cryptocurrency-focused outlet on February 6 (local time), veteran chart analyst Peter Brandt said that bearish pressure remains intense after analyzing Bitcoin’s recent price action. Brandt described the current downturn as a banana peel pattern—one that is difficult for investors to anticipate and marked by sudden slips. He noted that prices are falling quickly and sharply, similar to typical formations seen in past Bitcoin bear markets. Brandt lowered the previously cited support level of $54,000 that he mentioned when Bitcoin was hovering around $74,000, signaling that market fear has reached a peak.
The new bottom proposed by Brandt sits at around $42,000. Writing on X (formerly Twitter), he said that “if Bitcoin digs into the banana peel zone as deeply as in past bear cycles, bulls will not suffer below $42,000 for very long.” Given that Bitcoin is currently trading below $65,000, his analysis leaves room for the possibility of an additional short-term plunge.
The market downturn is being accelerated by a confluence of geopolitical tensions in the Middle East and a broader shift away from risk assets. Following reports of evacuation warnings involving Iran by the Trump U.S. administration, investors sold cryptocurrencies and moved funds into safe havens, driving Bitcoin to a record decline of more than 30% over the past month alone. While Brandt believes Bitcoin is already approaching a bottoming zone, he expects volatility to persist until a final support level is confirmed.
With the total cryptocurrency market capitalization shrinking to $2.24 trillion, Brandt’s warning presents a heavy challenge for market participants. If Bitcoin fails to reclaim the $65,000 support level in the near term, downward pressure toward $42,000 is expected to intensify. Investors are closely watching to see whether the legendary analyst’s forecast materializes while focusing on risk management.
Brandt believes that, as in past cycles, Bitcoin could see an opportunity to rebound once it secures a certain level of support. However, given that the market is currently experiencing emotionally driven sell-offs, patience and waiting for stabilization in indicators are needed rather than hasty decisions. Global investors are closely monitoring whether Bitcoin’s journey toward a bottom will indeed culminate around the $42,000 mark as Brandt suggests.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on its contents. The information should be interpreted solely for informational purposes.*