Bitcoin is poised to potentially challenge its all-time high of approximately $125,100 in the upcoming week. However, analysts caution that this move could be preceded by a significant correction. Veteran trader Peter Brandt suggests that the market might experience a substantial shakeout, which could be confirmed by a quick ascent to new highs within a short timeframe. Conversely, he warns of the possibility that the cryptocurrency could violate its current upward parabola, a scenario historically associated with substantial declines, often around 75%. While the prospect of an 80% decline is considered unlikely now, a retracement to the $50,000 – $60,000 range remains possible as the market tests lower support levels.
The broader cryptocurrency market experienced a sharp downturn on Friday following geopolitical developments in the United States. President Donald Trump announced a 100% tariff on Chinese imports, triggering a market-wide liquidation that saw over $19 billion wiped out in a single session. Bitcoin , which had been trading near $121,000 earlier in the week, fell to a low of approximately $102,000 before rebounding to around $112,400 at the time of reporting, according to data from CoinMarketCap.
Market participants have been cautioned to remain vigilant, particularly those employing high leverage. Risk management is paramount, as recent volatility underscores the dangers of maintaining leveraged positions well above 1.5 times. Despite the short-term turbulence, some analysts maintain an optimistic outlook, citing macroeconomic factors that could favor a sustained influx of capital into digital assets. A broader view suggests that macroeconomic policies, particularly the Federal Reserve’s monetary stance, are currently supportive of cryptocurrencies.
In particular, some market commentators interpret signals from the Federal Reserve indicating the end of quantitative tightening as a positive development for Bitcoin , viewing it as a form of liquidity injection that could stimulate further investment. Additional analysis highlights the combination of inflationary pressures from falling oil prices and a weakening labor market as factors that could drive further rate cuts, creating a favorable environment for Bitcoin ’s recent rally. Overall, the prevailing sentiment among many experts remains cautiously optimistic about Bitcoin ’s prospects in the coming weeks.
