Veteran commodity trader Peter Brandt recently shared his analysis on Bitcoin, highlighting a potential “dead cat bounce” after the cryptocurrency’s two-week drop from over $120,000 to the low $80,000 range. According to Brandt, the sharp decline followed a five-wave correction, with the current price movement merely representing a brief, basic rebound rather than a strong reversal. Brandt drew attention to the price range between $88,000 and $92,000, indicating that this zone is crucial in determining Bitcoin’s near-term market direction.
Brandt’s chart suggested that the Bitcoin price action looks more reactive than proactive, implying a lack of substantial demand or fresh buying interest. The market conditions back this view, as liquidity has been thinning in major markets, with wider bid-ask spreads and less depth in order books. This lack of strong market engagement has contributed to the recent volatility, with Bitcoin ETF flows showing mixed results. BlackRock’s IBIT ETF, in particular, saw several sessions of net outflows, signaling a lack of confidence in the market’s immediate outlook.
Bitcoin’s Struggle to Break Key Resistance Level
The $88,000 to $92,000 range remains pivotal, with Bitcoin needing to break above $92,000 to challenge the dead cat bounce theory. If Bitcoin fails to reclaim this level, it may indicate that the corrective structure remains intact, reinforcing the bearish sentiment in the market. Last week’s breakdown also saw more than $1.2 billion in long positions being liquidated, leaving the market with lighter positioning but without any significant strength to push prices higher.
Despite these challenges, there have been no signs of aggressive dip-buying or renewed interest in pushing Bitcoin higher. The broader market environment suggests that Bitcoin is caught in a corrective phase, with no clear indications of a bullish reset on the horizon. Until Bitcoin can prove otherwise by breaking above the critical $92,000 resistance, the market will likely remain cautious and uncertain.
As of now, traders are closely watching the $88,000 to $92,000 price zone, with market sentiment still hanging in the balance. The ability of Bitcoin to break through this resistance could ultimately determine whether the recent price action is simply a short-term correction or part of a larger shift in market trends.