U.Today – Veteran trader Peter Brandt recently raised a key question that could shape Bitcoin's next move. In a tweet, Brandt hinted at a possible shakeout in the market, implying that a final “dumping” or a prolonged period of sideways trading could occur before a big rally.
“The big question on my mind is whether Bitcoin will suffer one more drop (or a longer congestive cut) before the pump. Remember, markets generally don't go sour until retail traders run out,” Brandt wrote.
The veteran trader's use of the phrase “congestive cut” could refer to a range-bound trading phase in which prices oscillate within a tight range, frustrating both bulls and bears.
Will Bitcoin experience another “dump” or prolonged consolidation before the next big pump? According to Brandt, the answer lies in the behavior of retailers.
According to Brandt, markets don't go “sour” until retail participants lose patience. In the coming days, eyes will be on upcoming Bitcoin trends as well as the behavior of retail traders. If the answer to Brandt's question is yes, this could imply that Bitcoin's next significant rally could be just around the corner, but only after a little more pain.
Bitcoin price action
Crypto markets fell sharply last week; Bitcoin fell from nearly $102,735 on Tuesday to $91,187 at one point on Thursday. Major altcoins suffered even bigger drops in percentage terms.
BTC recovered to highs of $95,862 on Friday, which is close to where it is currently consolidating. At the time of writing, BTC was up 0.26% in the previous 24 hours, reaching $94,639. Since Saturday, BTC price has moved in a tight range of $93,670 to $94,983.
While Bitcoin price expectations remain, Bitcoin analyst Willy Woo warned cryptocurrency market participants to proceed with caution in the coming months, with more gains expected in the near term.
“Risk is peaking for the first time this cycle, and there are plenty of gains in the coins that have been selling off and plenty more profit taking before we properly reset,” Woo wrote in a recent post on X, noting that although Bitcoin sentiment appears “super bullish,” market participants should opt for a “more cautious approach” in the coming months.
This article was originally published on U.Today.
