Bitcoin Could Crash 50%, Pushing MSTR ‘Underwater,’ Legendary Trader Warns

Peter Brandt suggests Bitcoin might be forming a broadening top pattern similar to a 1977 soybean chart, potentially leading to a 50% price decline. This drop could put MicroStrategy's substantial Bitcoin holdings underwater, given their average acquisition cost. Brandt's analysis highlights a "sell zone" based on trendlines, but also acknowledges it's a hypothesis, not a certainty. Another analyst believes the pattern is bullish due to its descending nature on a bull trend. Brandt emphasizes his Bayesian approach, considering both potential scenarios: Bitcoin reaching $250k or dropping to $60k. He seeks asymmetrical bets in either direction, willing to adjust his position based on market movement. He admits the alternative bullish interpretation could be valid because he is open to both outcomes and prepared to adapt accordingly. MicroStrategy's average Bitcoin acquisition cost is approximately $74,010 per BTC. Bitcoin's current price is around $107,998 at the time of the report.