Veteran trader Peter Brandt has issued a striking warning, suggesting that Bitcoin’s current price chart is forming a pattern reminiscent of the 1977 soybean bubble, which could signal a significant downturn ahead.
A Warning from Financial History
In late October 2025, Peter Brandt pointed out that Bitcoin is forming what is known as a “broadening top” or “expanding top” pattern on its daily chart. This technical formation is characterized by two diverging trendlines that connect successively higher highs and lower lows, indicating increasing market volatility and a struggle between buyers and sellers to establish a clear direction.
Brandt draws a direct parallel to a similar pattern that formed in the soybean market in 1977. Following that historical precedent, soybean prices plummeted by about 50%. If Bitcoin were to follow the same path, Brandt warns that such a decline from recent levels could bring its price down toward the $60,000 range. He has stated that this pattern is “famous for tops” and that the big Bitcoin pump the market is waiting for may not materialize.
The Ripple Effect on a Key Player
The implications of such a price drop would extend across the market, but one company stands out as particularly exposed: MicroStrategy (MSTR). As the world’s largest corporate holder of Bitcoin, a sharp decline would place its massive holdings under pressure.
MicroStrategy has accumulated a vast treasury of Bitcoin, with its holdings often cited as over 200,000 BTC and reported elsewhere to be as high as 597,325 BTC, financed through billions of dollars in debt. A 50% drop in Bitcoin’s value would likely push the value of its holdings below the company’s average purchase price, which is estimated to be between $60,000 and $65,000. This could cause significant financial stress, potentially putting the company “underwater” and triggering concerns over liquidity and its ability to manage its debt obligations. Analysts have warned that such a scenario could force asset sales, creating a risk of a market cascade.
A Divided Market and Alternative Views
While Brandt’s analysis presents a cautious outlook, the market is far from unified on this perspective. Other analysts interpret the current price action differently.
Some, like chartered market technician Francis Hunt, offer an alternative interpretation. Hunt argues that the pattern on Bitcoin’s chart is a “Descending Broadening Formation”, which typically appears in the middle of an uptrend and suggests a temporary pullback rather than a major reversal. This view implies that the current volatility could be a pause that refreshes the market before the continuation of the broader upward trend.
Meanwhile, other voices in the market maintain a bullish stance. Analysts like Arthur Hayes have projected that Bitcoin could still reach as high as $250,000. This divergence of opinion underscores the inherent uncertainty in predicting market movements and the high-stakes nature of the current debate.
