Bitcoin: Experts warn that a bearish pattern is forming - Is a major collapse imminent?

Bitcoin price is currently hovering around $105,140, an attempt to grow after failing to break through the crucial $110,000 resistance. According to analysts from Swissblock, the asset may be entering a period of broad consolidation, fluctuating between $100,000 and the recent all-time high, which is approximately $112,000. Although the price remains high, signs of exhaustion are gradually emerging, leaving many investors concerned about Bitcoin's short-term prospects.

Swissblock believes that, although the market is still showing a stable price, the possibility of a breakthrough in the short term is quite low without a solid foundation. "The consolidation may last," Swissblock stated, while warning that one cannot expect a strong breakout if a sustainable growth base has not been established.

Is a bearish pattern forming?

One of the main concerns that Swissblock points out is the possibility that Bitcoin may be forming a double-top pattern, a bearish signal that usually precedes a trend reversal. This pattern occurs when the price is unable to break through the critical resistance level after two failed tests, indicating that the buying power is weakening.

If Bitcoin continues to hold its current price level without an increase in new investment inflows, the risk of a sharp price decline may occur. In this case, the critical support level of $100,000 will likely be tested and may come under pressure if the bulls are unable to regain control of the market soon.

! Source: SwissblockSwissblock also pointed out that Bitcoin is currently trading nearly 7% lower than its recent all-time high, which underscores the need for new capital inflows to push the price higher. Without strong fundamentals along with a steady flow of investment funds, Bitcoin could continue to be stuck in a tight range and easily break in a downward direction.

Given the current situation, the key question is whether Bitcoin will be able to regain its growth momentum or will it continue to consolidate and fall into a state of long-term stability. Investors are very interested in this development, as the decision of capital flows and changes in market sentiment can make a big difference in the short term.

Peter Brandt warns of a major collapse

The current chart structure of Bitcoin is causing legendary trader Peter Brandt to be concerned. Brandt believes that the price of Bitcoin could repeat a similar scenario to before the collapse at the end of 2021.

In a recent post on social media X, he shared the weekly Bitcoin chart, showing a sideways consolidation zone near recent highs. This situation is reminiscent of a similar event in late 2021, when Bitcoin traded above $60,000 for several weeks before entering a bear market and losing more than 50% of its value.

Pay attention to the yellow areas drawn on the chart, Brandt believes that currently, Bitcoin is in a similar consolidation process, just around the $104,000 mark. This has prompted the trading community to pay attention and engage in lively discussions.

Some argue that Bitcoin's fundamentals are stronger now than they were in 2021, and there is no reason to be worried technically. However, Brandt doesn't quite agree. According to him, fundamental factors are usually most obvious at the highest level and weakest at the lowest, which can be easily ignored when looking at the situation from the perspective of market sentiment.

One of the reasons that many argue that the current downside risk may be limited is that the cost of Bitcoin mining is currently close to the average cost of production. This can create a layer of protection for the Bitcoin price, as the cost of mining is an important factor that helps to maintain market stability. However, Brandt does not believe that production costs can play a decisive role in predicting price fluctuations. According to him, even if there is a profit, the producer will continue to supply Bitcoin to the market, and the price may not fully reflect the cost of production.

Currently, Bitcoin is still trading in a fairly narrow range, and the market seems to be diverging. Some traders are expecting an upcoming breakout, while others are concerned that the current consolidation could be a sign of an imminent collapse. The warning from Peter Brandt emphasizes that technical signals may play a more important role than the current market feels, and historically, such situations have often led to strong reversals.

The current situation of Bitcoin will continue to be a hot topic in the investor community and among analysts. It is important to closely monitor changes in the fundamentals and technical indicators in the coming weeks, as they may determine the direction of the market in the short term.

Taylor