Peter Brandt Emphasizes "Bitcoin Has Not Bottomed Out"...Warns of Long-Term Decline Risk

▲ Bitcoin (BTC)/AI Generated

Peter Brandt's warning, which poured cold water on the 'Bitcoin bottom' theory, coupled with the shock of the US Producer Price Index, is once again shaking market optimism.

U.Today reported on May 13 (local time) that veteran trader Peter Brandt refuted claims that a reliable bottom pattern had formed for Bitcoin, stating, “No, no, no.” Brandt assessed the recent rebound not as the start of a new bull rally, but as a technical move within a localized bearish channel.
Brandt's bearish scenario gained traction in conjunction with US macroeconomic indicators. The US Producer Price Index rose 6% year-over-year, exceeding market expectations of 4.8%, and the core Producer Price Index also increased by 5.2% year-over-year. The US Bureau of Labor Statistics also revised up the previous April figures from 4.0% to 4.3%.

Brandt pointed to the formation of a potential bearish channel that began after the February lows. He noted that Bitcoin is facing strong resistance at the top of this channel, and that temporary liquidity inflows merely created speculative opportunities, ignoring inflationary pressures. U.Today reported that Brandt is leaning more towards a potential decline within the channel rather than a confirmation of Bitcoin's bottom.

Brandt's key criterion is the daily closing price based on the Average True Range (ATR) indicator. He suggested that if Bitcoin closes below $79,145, it could signal buyer capitulation. If this signal appears, Bitcoin could first be pushed to the middle of the channel and then head towards its lower boundary, according to the analysis.

U.Today reported that early signs of decline are already appearing in high-risk asset classes. The fact that global crude oil inventories are expected to reach critically depleted levels with about two and a half weeks left until June was also cited as a market pressure factor. Brandt's analysis concludes with a warning that Bitcoin has no definite bottom yet, and the risk of a long-term decline remains.

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