Crypto legend’s banana chart flashes warning as Bitcoin hits $123,000 — is a big crash coming?

Seasoned trader Peter Brandt, who has famously predicted some of the largest Bitcoin moves years in advance, is sounding a lighthearted but serious warning as Bitcoin reaches $123,000, as per a report.

What Is Peter Brandt Saying About Bitcoin’s Latest Surge?

On the weekend, Brandt posted on the social media platform X (formerly Twitter) a powerful and strangely funny graphic: the entire price history into a banana-shaped curve, as reported by The Street. He asked his followers on X, “If the entire price history of Bitcoin was a fruit, what fruit would you say it was?” as quoted in the report.



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Is Bitcoin Approaching a Critical Technical Level?

But beneath the joke is a keen warning, as that curving banana is not just a fun picture; it represents the parabolic price rallies Bitcoin has experienced throughout its existence, as reported by The Street. Every single one of its significant surges, Brandt points out, has resulted in a sudden and painful price reversal, according to the report.

The cryptocurrency's current price, which is at $123,000, lies exactly at what Brandt refers to as the "upper rim" of this upward channel, a technical roof where history indicates Bitcoin has historically experienced big pullbacks, as per The Street report.

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What’s Driving Bitcoin’s Rapid Price Increase?

Bitcoin's recent run, witnessed last week, shows that the cryptocurrency went from around $108,000 to more than $123,000, driven by huge institutional inflows, according to the report. QCP Capital has said that spot BTC ETFs had more than $2 billion in flows last week alone, while leveraged longs are crowding into the market, as per The Street report. Open interest is now more than $43 billion, and funding rates on perpetuals are increasing, classic signals of a frothy setup, as reported by The Street.

What Does the Crypto Fear & Greed Index Say?

Investor sentiment follows suit, the Crypto Fear & Greed Index recently surged from 40 (neutral) to 70 (greed), indicating that many are swept up in a bull frenzy, according to the report. Options markets, on the other hand, occasionally give early warning and are currently subdued, though a history of otherwise being silent until just before a fall, as per The Street report.

The Street wrote in its report, "So when a trader with Brandt’s record posts a chart that looks like a ripe banana ready to split, maybe we should take a step back."

What Exactly Is a “Banana Chart” in Trading?

In technical charting, a banana curve is one means of showing a parabolic price movement, as per the report. It is a sign of a sudden surge in price as buyers swarm in, usually under the influence of FOMO, or fear of missing out on huge profits, according to The Street. Such curves may be thrilling, but they are brittle as the steeper the ride, the more susceptible the price is to a devastating and painful reversal, as per the report.

Brandt has a record that few can top: he predicted the 2017 Bitcoin top months ahead of time and signalled the 2021 breakdown more than a year ahead of time, according to The Street report. His banana-shaped chart, presented with a grin, is a warning that the present rally might be near a tipping point, as per the report.

FAQs

Who is Peter Brandt?
A veteran trader known for predicting key Bitcoin market tops and breakdowns.

What does the banana chart represent?
It visually represents Bitcoin’s parabolic rallies, each followed by steep corrections.