Brandt Warns Bitcoin Could Face 'Terminal Wash-Out

Legendary chartist and trader Peter Brandt has a sobering warning for cryptocurrency investors.

He has stated that Bitcoin could still plunge lower or suffer a devastating "terminal wash-out."

According to Brandt, a market bottom might not materialize until October, which would be a huge blow for the bulls.

A trend reversal

The chart provided by Brandt shows an ascending channel that governed Bitcoin’s price movement from late February through May.

As I see it Bitcoin has met its initial target at Feb low. This does not mean that BTC cannot work lower or have a terminal wash-out. I do not see a tradable low until October. pic.twitter.com/Yg9RL8U7cF

— The Factor Report (@PeterLBrandt) June 4, 2026

However, Bitcoin collapsed below the lower support boundary of this channel, and a trend reversal is pretty much confirmed at this stage.

Reaching a key moving average

Following the plunge, the leading cryptocurrency has now touched the critical 200-week moving average for the first time since October 2023.

CryptoQuant CEO Ki Young Ju has noted that"this distribution phase feels like a massive change of hands." The average cost basis for Bitcoin investors currently sits around $53,000.

Bear markets tend to conclude after the price capitulates below this realized price.

Ju initially believed this level would be impossible to revisit during this cycle due to massive institutional inflows, but the current data points to relentless selling pressure. The fact that prices have returned to early-2024 levels despite massive ETF buying and corporate adoption indicates that there has been an immense volume of spot distribution from older holders.

"Honestly, in terms of rising asset value, I think traditional financial institution investors might provide an even stronger demand base than Bitcoin OGs. Of course, in that process, some of the cypherpunk values may get diluted. I really regret that part too," he said on X.

In the meantime, gold bug Peter Schiff has noted that Bitcoin is trading below the previous macro peak it established back in April 2021.

At its current price, Bitcoin is actually trading below the peak it first hit in April 2021. That's over five years ago. @Saylor expects Bitcoin to rise by over 30% per year over the next five years. But over the past five years and two months, its total return has been negative.

— Peter Schiff (@PeterSchiff) June 3, 2026

Prominent bulls like Michael Saylor publicly expect Bitcoin to compound and rise by over 30% per year over the next five years, but the reality of the past five years shows that Bitcoin’s total return has turned negative for investors who bought the 2021 highs.