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Peter Brandt, a respected figure in the trading community, recently warned that Bitcoin could face a dramatic price drop, drawing comparisons to its 2022 chart setup.
His remarks come at a time when. Bitcoin has seen a notable 1.87% price increase in the last 24 hours and a 3.61% rise over the past week, now priced at $109,192.
Despite the positive momentum, Brandt’s technical analysis suggests the market could be gearing up for a major reversal.
Bearish Reversal Concerns
According to Brandt, the current setup mirrors the 2022 scenario, where Bitcoin underwent a substantial decline. He points out the presence of a Double Top pattern, a bearish technical formation that indicates potential price reversal.
Is Bitcoin $BTC following its 2022 script and setting up for a 75% correction? Doesn't hurt to ask this, does it? pic.twitter.com/BAywkhSwgy
— Peter Brandt (@PeterLBrandt) June 10, 2025
In addition, the Exponential Moving Averages (EMA) are also signaling a downward trend, further suggesting that the market may be heading for a correction.
Technical Indicators Reflect Bearish Sentiment
The chart provided by Brandt highlights the emergence of a Double Top pattern, which typically signals a bearish reversal in price action. For context, the first top formed when BTC claimed highs above $108,000 in December 2024 and January 2025.
However, the asset faced a considerable decline below $100,000 after this peak. Interestingly, following the recovery that began in April, Bitcoin soared to a new all-time high near $112,000 last month, forming the second top.
Notably, this Double Top pattern mirrors a similar setup seen in 2022. For context, Bitcoin hit an initial top of $65K in April 2021. After this, it dropped and then recovered to a second top of $69K in November 2021, marking its ATH. After the $69K peak, Bitcoin collapsed considerably, leading to the bear market. Brandt’s chart suggests another drop could be looming again.
Moreover, the 9-period EMA crossing below the 21-period EMA has historically marked the beginning of a downward trend, further reinforcing Brandt’s concerns. These technical indicators have led some traders to anticipate a potential 75% crash, should history repeat itself. A 75% decline from $109,192 would indeed bring Bitcoin’s price to around $27,298.
Derivatives Data Shows Diverging Trends
Amid Brandt’s warnings, Bitcoin’s derivatives data paints a more complex picture. Bitcoin’s volume has surged by nearly 30%, now at $100.33 billion, indicating heightened market activity. This rise in volume typically precedes significant price movements. Moreover, open interest in Bitcoin has also increased by 1%.
The Binance BTC/USDT Long/Short ratio of 0.5501 and the OKX BTC Long/Short ratio of 0.53 both indicate that more traders are holding short positions than long positions, suggesting a bearish sentiment in the market on these exchanges.
Bitcoin Investment Products See Outflows
Meanwhile, Bitcoin’s investment products have seen modest outflows. Over the past week, Bitcoin faced $56.5 million in outflows, signaling a potential shift in investor sentiment. This comes as Ethereum has experienced strong inflows, leading the way with $296.4 million.
The continued outflows from Bitcoin investment products, along with short-Bitcoin products, may further suggest that market participants are adjusting their expectations amid ongoing uncertainty.