Bitcoin parabola breakdown raises chance for 80% correction: Veteran trader

Veteran trader Peter Brandt has warned that Bitcoin has violated its current parabolic advance, a technical signal that historically preceded drawdowns exceeding 80% in prior bull markets. If history repeats, this suggests a potential revisit to the $25,000 range over the coming months, as BTC is already down about 20% from its all-time high.

This technical warning coincides with rising macroeconomic liquidity risks, particularly the anticipated Bank of Japan (BOJ) rate hike, which historically tightens global funding conditions and negatively impacts risk assets like Bitcoin. Data shows Bitcoin has fallen significantly after the last three BOJ hikes.

However, the current market structure differs from previous cycles due to significantly stronger adoption. Corporate Bitcoin treasuries have grown substantially, and the introduction of spot ETFs suggests a more stable, institutionally driven demand base, which might mitigate the severity of any future correction.

(Source：Cointelegraph)