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 theory that Bitcoin (BTC) has bottomed out, combined 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 for Bitcoin had formed, stating, “No, no, no.” Brandt assessed the recent rebound not as the start of a new bull rally, but as a technical movement within a local 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 rose 5.2% year-over-year. The US Bureau of Labor Statistics also revised 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 low. He observed that Bitcoin was 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 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 indicator. He believes that if Bitcoin closes daily below $79,145, it could be a signal of buyer capitulation. If such a signal appears, analysis suggests Bitcoin could first be pushed to the middle of the channel before heading towards its lower boundary.

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

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