Veteran Trader Warns Bitcoin Could Face 75% Price Drop

Bitcoin's price has increased by 1.87% in the last 24 hours and 3.61% over the past week, currently trading near $109,192. Despite this rise, veteran trader Peter Brandt warns of a potential drop of up to 75%, which could see Bitcoin fall to approximately $27,290, revisiting early 2023 lows.

Crash Scenario

Brandt predicts a significant decline similar to the 2022 bear market.
In 2022, Bitcoin fell sharply after reaching highs of $65K and $69K in 2021.
Recent highs above $108,000 may indicate an impending breakdown.

Technical Indicators

The 9-period EMA has crossed below the 21-period EMA, signaling potential downtrends.
A weekly close below these EMAs could lead to panic selling.
Failure to reclaim the $108,000 level is critical to watch.

Market Reactions

Trading volume increased nearly 30% to $100 billion; open interest rose 1%.
Long/short ratios on major exchanges indicate more shorts than longs.
Bitcoin funds experienced outflows of about $57 million, under 0.2% of total assets.
Ethereum products saw inflows of $295 million during the same period.

Bitcoin faces a pivotal moment. Investors should monitor the $108,000 region closely as a drop could catch many unprepared. Risk management is crucial at this stage.