The Bitcoin price chart has once again drawn attention, thanks to legendary trader Peter Brandt. Known for his astute market observations, Brandt has shared his latest insights that could significantly impact traders and investors alike. This time, his analysis includes a hand-drawn “dead cat” figure on the chart, indicating a potential pivotal moment for Bitcoin.
Over the past two weeks, Bitcoin has experienced a sharp decline from over $120,000 to the low $80,000s. Brandt describes this movement as a full five-wave correction, suggesting that the current rebound may be nothing more than a temporary reaction.
Bitcoin Price Chart: Critical Range
The current trading range for Bitcoin, according to Brandt, lies between $88,000 and $92,000. This zone has become crucial as traders attempt to decipher whether Bitcoin is on the brink of a significant move or merely stabilizing. Brandt’s observations highlight the importance of this range in the ongoing market dynamics.
Market data corroborates his analysis. Recently, liquidity has thinned, and the bid-ask spread has widened. Order books lack depth, and Bitcoin ETF flows have been erratic, with BlackRock’s IBIT experiencing multiple net-outflow sessions. The previously observed inflow pattern has vanished, adding to the market’s uncertainty.
Is It a “Dead Cat” or a Bear Trap?
Brandt’s analysis of the Bitcoin price chart also points to a potential “dead cat” scenario. This term refers to a temporary recovery in prices followed by a continued downtrend. Over $1.2 billion in long positions have been liquidated, leaving the market lighter but not stronger. The lack of aggressive dip-buying and Bitcoin’s inability to reclaim key levels suggest a corrective path rather than a bullish reset.
The ultimate test for this theory lies in whether Bitcoin can close above the $92,000 mark. Achieving this would invalidate the dead-cat-bounce theory and signal renewed market confidence. Conversely, failure to break this level would mean the current downside structure remains dominant.
As the market continues to grapple with these dynamics, traders and investors should keep a close eye on the evolving situation. Brandt’s insights provide a valuable framework for understanding the current state of the Bitcoin market.
