Peter Brandt warns that Bitcoin could fall to $78

• Bitcoin could fall to $78K with bearish pattern.
• Critical support is between $93k and $95k.
• Volume is key to invalidating the negative projection.

Veteran trader Peter Brandt has drawn attention to a bearish chart pattern in Bitcoin (BTC), suggesting that the cryptocurrency could fall to $78 if critical support levels are broken. In his latest analysis, Brandt highlighted the formation of a “head and shoulders” pattern, which traditionally signals a potential trend reversal.

According to the trader, the pattern will become relevant if support between $93 and $95 is lost. “This is a head and shoulders top pattern. It could complete and take the price to $78; it could fail with a stronger rally or it could evolve into another formation. But as it stands now, it should be treated for what it is,” Brandt said in a post on X.

Analysis of potential fall

The pattern identified by Brandt is highlighted in a red zone on the chart, with the neckline located at US$ 93 thousand. If the price of BTC breaks this line, the projection points to a fall towards US$ 78 thousand, accompanied by an increase in volatility, indicated by the Average True Range (ATR) index.

Furthermore, the Average Direction Index (ADX) signals a decrease in bullish momentum, reinforcing the possibility of a significant correction. For traders, holding support at $93K-$95K is essential to avoid a bearish scenario.

Possibility of resumption of high

Despite the bearish signs, BTC could still surprise with a recovery. If the price breaks the resistance at $95, the head and shoulders pattern will be invalidated, opening up space for a rally towards $98 or higher. However, trading volume will be a determining factor in sustaining this move.

Brandt also pointed to similarities between BTC’s current behavior and patterns from previous years, such as the “Hump-Slump-Bump-Dump” that preceded new parabolic moves. Still, he warned that many investors may be betting on cryptocurrencies with unrealistic expectations about economic fairness, which he said will lead to disappointment.

At the time of publication, the price of Bitcoin was quoted at US$93.633,00, up 0.1% in the last 24 hours.

Bitcoin is currently trading near $94, with the market's eyes on critical support and resistance levels.