Legendary trader Peter Brandt warns that Bitcoin may continue to big dump, with short-term support at 70,000.

On December 1st, the price of Bitcoin fell over 6% in the past 24 hours, reaching a low of $85,653 during the day. The global market capitalization of Crypto Assets dropped over 5% to about $2.92 trillion. Legendary trader Peter Brandt posted a bearish prediction on the X forum, warning that Bitcoin may dip further.

Brandt shared a logarithmic weekly chart of Bitcoin, showing the highs and lows of Bitcoin prices over the past 12 years. The upper boundary of the green area in the chart is below $70,000, while the lower boundary support is around $40,000, suggesting that Bitcoin still has room to dip. He pointed out that as the market enters a bear market, institutional investors and financial firms may trigger large-scale sell-offs, causing Bitcoin to fall below $50,000. Nevertheless, Brandt remains optimistic about Bitcoin's long-term prospects.

Previously, Brandt predicted that Bitcoin could dip to $58,000. When Bitcoin fell below the psychological barrier of $100,000, the two support levels he marked at $81,000 and $58,000 proved to be accurate. Bitcoin is currently trading at approximately $86,738, with a 66% increase in trading volume over the past 24 hours, indicating heightened market volatility.

From a cyclical perspective, Bitcoin continues to follow the four-year halving rule, with historical peaks usually occurring 12-18 months after the halving. Long-term holders and OG whales have sold their positions as planned, while short-term holders and some institutional investors are buying on dips. Analysis indicates that Bitcoin may face a deep correction similar to historical bear markets, where prices have previously fallen by more than 70%-80%. Currently, it has dropped over 32% from the historical high of $126,198.

The market is currently focusing on the support level around $70,000. If it falls below this, it may reach a lower range. At the same time, traders should be wary of increased market volatility and potential liquidation pressure.