Despite the Federal Reserve cutting interest rates and ending quantitative tightening (QT), Bitcoin price is still facing strong selling pressure and is once again trading below $90,000.
This week is crucial as the United States will release November CPI data and the Bank of Japan’s decision to raise interest rates.
Veteran trader Peter Brandt warns that Bitcoin may be entering a deeper correction based on historical market cycles. Brandt noted that Bitcoin bull cycles typically follow a parabolic rise. However, once BTC broke out of the parabolic trend, the price plummeted nearly 80% from its peak.
According to Brandt, the current parabolic structure is now broken, as shown in the chart above. This further increases the risk of significant drawdowns. Based on historical behavior, Brandt said that a roughly 80% drop in Bitcoin from its all-time high would mean a price level closer to $25,240.
Much of the selling pressure on Bitcoin comes from retail investors. Bitcoin price has been facing strong rejection at $93,000, with bulls failing to break above this level.
This week, BTC fell below the $90,000 level again and tested the $88,000 support. Still, some market experts remain bullish on Bitcoin.
Market analyst Captain Faibik said a Bitcoin price breakthrough may be imminent. However, he stressed that bulls must reclaim the $93,000 resistance level to resume upward momentum.
Faibik noted that while buyers have been struggling to break above $93,000, repeated retests are gradually eroding resistance.
On the other hand, Strategy CEO Michael Saylor hinted at more Bitcoin purchases in the future. As the largest Bitcoin funding company, the company already holds 660,524 Bitcoins worth $58.5 billion.
On Thursday, December 18, the United States will release CPI (consumer price inflation) data for November. The most recent forecast for U.S. consumer price inflation in November 2025 suggests year-over-year growth of about 3.1% and month-on-month growth of about 0.4%. These numbers could influence the upcoming Fed decision to cut interest rates.
On the other hand, the Bank of Japan (BoJ) will announce its interest rate decision on December 19.
Mass market analyst Ted Pillows pointed out that the last three times the Bank of Japan announced interest rate hikes, the price of Bitcoin fell by 20-30%. If history repeats itself, a drop to $70,000 cannot be ruled out.
Read original story by Bhushan Akolkar of Coinspeaker.com Peter Brandt Says Bitcoin Price Could Plunge 80% to $25,240, Here’s Why