TLDR
- Bitcoin forms a rare broadening top pattern seen in 1970s soybeans.
- Strategy (MSTR) stock dropped 10% amid Bitcoin corporate holdings pressure.
- The Crypto Fear and Greed Index shows extreme fear at 25 points.
- Analysts suggest potential upside if inflation data eases and macro risks reduce.
Bitcoin’s price chart is showing patterns similar to the 1970s soybean market, which experienced extreme volatility and a sharp 50% drop in value. Veteran trader Peter Brandt warned that current chart formations could signal a major top for Bitcoin. Analysts note that the cryptocurrency faces pressure from macroeconomic factors, including recent tariff announcements, but some traders expect potential upside in the coming months.
Bitcoin Forms Broadening Top Pattern
Peter Brandt, a veteran trader, identified a rare broadening top pattern on Bitcoin’s chart. He noted this pattern historically signals market tops.
“In the 1970s, soybeans formed such a top, then declined 50% in value,” Brandt told Cointelegraph. He suggested Bitcoin could face similar pressure if history repeats. Brandt warned that the decline may affect corporate holders, including Michael Saylor’s company Strategy (MSTR), whose stock has fallen 10.13% in the past month.
The broadening top pattern occurs when price swings widen over time, indicating rising volatility. Brandt emphasized that the cryptocurrency’s recent rallies may not lead to the large upward movement some traders expect.
Contrasting Analyst Views on Bitcoin’s Outlook
Not all analysts share Brandt’s caution. BitMEX co-founder Arthur Hayes projected that Bitcoin could reach as high as $250,000 in the current cycle. He noted that the fourth quarter historically shows strong returns, with an average 78.49% gain according to CoinGlass.
October is traditionally a bullish month for Bitcoin, but sentiment has shifted. The Crypto Fear & Greed Index recorded an “Extreme Fear” score of 25 on Wednesday, reflecting broader market caution following macroeconomic developments.
Traders on social media also highlighted that Bitcoin must maintain recent higher lows to support the monthly opening price. AlphaBTC stated that sustaining these levels is crucial for any potential upward movement.
Market Factors Influencing Price Movement
Recent U.S. tariff announcements and broader market volatility have weighed on Bitcoin’s price. The cryptocurrency has dropped 5.32% over the past 30 days, mirroring challenges seen in other risk assets.
David Hernandez, crypto investment specialist at 21Shares, highlighted that Bitcoin’s “opportunity window” could reopen if the U.S. Consumer Price Index shows easing inflation. He said, “Bitcoin is coiled and ready to spring upward,” suggesting traders remain alert for macroeconomic triggers.
Michaël van de Poppe, founder of MN Trading Capital, noted that gold’s 5.5% drop from recent highs may indicate a rotation into Bitcoin and altcoins. He added that investors could shift funds as traditional safe-haven assets decline.
Historical Patterns and Investor Caution
The comparison to the 1970s soybean bubble underscores Bitcoin’s volatility. Historical charts show that broadening top formations often precede sharp corrections.
While some analysts expect further rallies, caution persists among traders. Bitcoin’s ability to sustain support levels and respond to macroeconomic signals will likely influence price direction in the coming weeks.
As of the latest data, Bitcoin trades near $108,522, showing minor fluctuations. The cryptocurrency remains closely watched as traders monitor patterns, sentiment indicators, and macroeconomic developments.
The news emphasizes that Bitcoin’s current price behavior mirrors past commodity bubbles, prompting traders and investors to consider both potential upside and downside risks.
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