Bitcoin News: Legendary Trader Sounds Alarm on Bitcoin Collapse

Peter Brandt, a veteran trader, cautions that Bitcoin risks greater losses having violated key support. Dead cat bounce goes before a possible decline to lower levels.

Bitcoin is trading within a narrow band of $88,000 and 92,000. The cryptocurrency had dropped more than 40,000 within two weeks. Peter Brandt, a veteran commodity trader, posted a technical warning on X.

Source- X Peter Brandt

Peter Brandt on X states that Bitcoin has taken a widening wedge pattern. The trend disintegrated at major support lines. His graph shows what traders refer to as a dead cat bounce after falling at a rate of above $120,000.

The Dead Cat Bounce Nobody Saw Coming

After a dramatic correction of Bitcoin, there is uncertainty in the cryptocurrency market. Price action indicates a five-wave corrective action. The analysis by Brandt indicates that the new recovery is not fundamental.

Bitcoin is currently trading at approximately 86,869, an increase of 0.9% in the past 24 hours. The disintegration seems decisive and heavily moving. The volume bars indicate spikes in the downturn, proving the existence of selling pressure.

The market participants are split on the way to go. The volumes of trading are still low when compared with the earlier this year rally. The order book depth has reduced in major exchanges.

Technical Breakdown Reveals Hidden Weakness

On X, when Peter Brandt tweeted, the chart presents points 1-5 in the widening of the wedge. When decreasing, the pattern normally indicates bearish continuity. Bitcoin evidently dropped below the lower trendline support.

The bounced-back projection on hand depicts the first bounce back to broken support. Then there follows a great falling away to lesser support zones. Breaking support in the resistance became resistance, and the critical levels to observe include: $90,000-95,000.

Liquidity conditions worsened during the last seven days. Bid-ask Spreads on various platforms increased. This represents a decrease in the levels of participation of market makers.

Recent liquidation information demonstrates that there was more than 1.2 billion in long positions forced out. The deleveraging purged extravagant positioning. Good dip-buying power is still not conclusive evidence of strong demand.

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Institutional Money Heads for the Exit

The activity of Bitcoin exchange-traded funds changed significantly in relation to previous trends. The IBIT of BlackRock registered several net outflow periods last week. The biggest Bitcoin ETF used to receive steady inflows.

Smaller ETF products were mixed with sporadic performance. Others registered small inflows, and others registered withdrawals. Fluctuating flow behaviour is also a contrast to consistent accumulation in Q4 2024.

These ETF flows reflect institutional and retail demand using regulated vehicles. The transition to non-uniform inflows is an indication of modified risk appetite. Cryptos may be revisiting portfolio allocations after the correction.

The support at $88,000 sustained against the downward pressure in the short run. Upward attempts were rejected several times at a resistance close to 92,000. Bulls and bears did not yet gain clear control.

The bearish forecast by Brandt is a caution of potential further falls in the future. The market is informative instead of cumulative. Traders act cautiously, not with conviction, at the current levels.

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