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Legendary chartist Peter Brandt has warned that Bitcoin could suffer a 'terminal wash-out' before finding support. He said a market bottom may not appear until October. Bitcoin also fell to $63,000 early Thursday, its lowest level since February 24. The move extended this week’s losses to more than 14%.
Brandt’s chart showed Bitcoin moving inside an ascending channel from late February through May. The price then broke below the lower edge of that channel. That move signaled a trend reversal. The break came as traders watched the market for signs of stabilization.
At the same time, Bitcoin touched its 200-week moving average for the first time since October 2023. That level has drawn close attention from market participants.
CryptoQuant CEO Ki Young Ju said the current phase looks like a major transfer of holdings. He noted that the average cost basis for Bitcoin investors sits near $53,000. He also said bear markets often end after prices capitulate below realized price levels.
Ju had previously said that revisiting this level seemed unlikely during the current cycle. He pointed to strong institutional inflows as one reason. Even so, he said the latest data now shows relentless selling pressure. He also said the return to early-2024 price levels reflects heavy spot distribution from older holders.
Ju added that traditional financial institutions may offer a stronger demand base than Bitcoin’s early supporters. He said that shift could dilute some cypherpunk values. Peter Schiff also weighed in, saying Bitcoin now trades below the previous macro peak from April 2021.
Read More: Bitcoin News Today: Fear Gauge Jumps As BTC Selloff Tests $65,000 Support
The selloff has also pushed investors toward protection trades. The 30-day implied volatility index, BVIV, rose to 53.17. That level marked its highest reading since April 2. Traders used options more aggressively as Bitcoin weakened.
U.S.-listed spot Bitcoin ETFs also recorded fresh outflows. Investors pulled another $50 million on Wednesday. That made 13 straight trading days of outflows from the funds. Many traders see those products as a proxy for institutional demand.
Paul Howard of Wincent said the broader crypto sell-off began after Strategy’s transfer triggered ETF outflows. He added that speculation around Mt. Gox liquidations added more pressure. He said some traders now view $50,000 as a possible bottom this year. He also noted that weak catalysts and liquidity moving into AI-linked tech sectors suggest more volatility ahead.
Some market participants are now watching the low $60,000 area as support. Material Indicators said the local low is around $59.9K, and the 200-week moving average sits in the same region. The group said that the level does not guarantee support. It only shows where the market may face its next decision.
Peter Brandt’s warning adds fresh pressure to an already weak Bitcoin market. The cryptocurrency has broken below a key ascending channel, touched its 200-week moving average, and slipped to $63,000 as ETF outflows continue.
With traders watching the low $60,000 zone and some calling $50,000 a possible bottom, the market now faces a critical test. Investors may need to watch support levels closely as October approaches.
