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With a new week opening, veteran commodity trader Peter Brandt gave Bitcoin a hard look, sharing a chart with a hand-drawn "dead cat" figure. The setup sees Bitcoin's two-week drop from above $120,000 to the low $80,000s as a full five-wave correction, with nothing more than a basic rebound on the other side.
The chart shows the same zone that traders have been stuck in for days: around $88,000 to $92,000. According to Brandt, this range is the only one that matters right now. The way it is set up looks more like a reaction to the situation than a proactive approach.
Market data backs this up. Last week, liquidity became thin on the major markets. The bid-ask spread widened. Order books lost depth. Bitcoin ETF flows have been all over the place lately. BlackRock's IBIT had a bunch of net-outflow sessions, and smaller products had some mixed results. The inflow pattern observed earlier in the quarter has disappeared.
"Dead cat" or bear trap?
The breakdown also showed more than $1.2 billion in long positions, leaving positioning lighter but not stronger. There has not been any aggressive dip-buying, and Bitcoin has not been able to reclaim any of the key levels that would signal real demand. The structure still shows a corrective path, not a bullish reset.
If Bitcoin can manage to close above $92,000, it will show that the dead-cat-bounce theory is wrong and that people are feeling good about the market again. If BTC cannot break through that ceiling, the downside structure will stay in control.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team