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Peter Brandt believes Bitcoin is not "out of the woods" because he views the current market structure as a long-term bear market.
He believes that this structure cannot be invalidated by a few days of positive price action.
As reported by U.Today, Bitcoin pulled off a stunning comeback on Tuesday, surging above the $92,000 level and paring its most recent gains.
However, according to Brandt, this could be just market noise despite some bullish developments (such as Vanguard's decision to open access to cryptocurrency exchange-traded funds).
Dead cat bounce?
In November, the price of the flagship cryptocurrency collapsed to the $80,000 level following a violent sell-off.
Bitcoin then managed to recover, but it was violently rejected at the $93,000 level. Brandt subsequently described the earlier move as a "dead cat bounce."
Hence, there is still a possibility that this is yet another bear market rally that will eventually fade.
So far, Bitcoin (BTC) is still down 27.6% from its record peak of $126,080 that was achieved in early October.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team