Seasoned commodities trader Peter Brandt has issued a cautious assessment of Bitcoin’s recent price action. He shared a technical chart illustrating what he terms a “dead cat bounce”—a deceptive rebound following a sharp drop from above $120,000 to a low of $80,000.

Bitcoin now trades in a tight range of $88,000–$92,000, serving as the focal point for market participants forecasting its next move. Brandt’s analysis reveals a five-wave corrective pattern, suggesting the recent rally lacks strong fundamental backing.

The asset shed over $40,000 in two weeks before stabilizing at $86,869—up 0.9% in the past 24 hours. Sentiment remains split: is this a pause before further downside, or the foundation for sustained recovery?

Technically, the market is operating reactively—not accumulatively. Trading volume remains subdued compared to the early-year rally, while order-book depth has thinned across major exchanges—amplifying price impact from large trades.

Liquidity deteriorated last week: bid-ask spreads widened, signaling diminished active participation. This reflects trader caution—not conviction.

The $88,000–$92,000 zone has been tested from both directions: $88,000 support held, while $92,000 resistance repelled upward attempts. Neither bulls nor bears have seized control.

Liquidation data shows over $1.2 billion in long positions forcibly closed during the decline. Though excessive leverage has been flushed out, no aggressive accumulation wave—a hallmark of solid bottoms—has followed.

ETF flows have also shifted: BlackRock’s IBIT recorded net outflows last week, contrasting its prior steady inflows. Smaller ETFs show mixed patterns—unlike the consistent accumulation seen in Q4 2024 and early 2025.

This signals a shift in institutional risk appetite, with portfolio managers now reassessing crypto allocations post-correction.

VECS Commentary
Extreme volatility is Bitcoin’s inherent nature. Warnings like dead cat bounce serve as useful early alerts—but become dangerous when treated as definitive truth. What truly matters is personal risk management: set stop-losses, diversify, and avoid over-leverage. No forecast is 100% accurate; the only thing within our control is how we respond to uncertainty.