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HomeCrypto NewsMarketBitcoin Still at Risk: Brandt Warns Recent Rally Didn’t Break Bearish Structure

Bitcoin Still at Risk: Brandt Warns Recent Rally Didn’t Break Bearish Structure

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Veteran trader Peter Brandt recently highlighted that the latest Bitcoin rally failed to reverse the longer-term bearish structure of lower highs and lower lows.

Despite the brief surge, Brandt points out that Bitcoin still hasn’t broken the levels necessary to confirm a trend reversal. According to him, a major bullish shift will only occur if Bitcoin can close above $71,000 and establish a new all-time high.

The accompanying chart reveals that BTC has been in a consistent downtrend for over seven months. This pattern features lower highs and lower lows—a signal of ongoing bearish sentiment. 

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Bitcoin Resistance Levels to Watch

Brandt identifies two major resistance levels on the weekly chart that Bitcoin price has been unable to surpass. The first is around $70,602, while the second, a higher resistance, sits at $73,808, the current all-time high.

Bitcoin 1W Chart Peter Brandt
Bitcoin 1W Chart | Peter Brandt

These levels have acted as major barriers to upward momentum, halting Bitcoin’s advance on multiple occasions. Without breaking through these levels, the market is likely to continue in its consolidation phase.

Brandt emphasized that while the recent rally gave some hope, it did not disturb the sequence of lower highs that have defined Bitcoin’s price action for months. 

He argues that a true reversal in momentum would only occur if Bitcoin breaks past $71,000 and confirms an ATH. The market veteran suggests that anything short of that is simply another move within the prevailing bearish framework.

BTC MAs Suggest Caution

Further, the 8-week simple moving average (SMA), currently around $60,526, serves as support. Bitcoin’s price has been hovering near this moving average, indicating a lack of clear direction. 

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Meanwhile, volatility, as measured by the Average True Range (ATR), remains moderate. The ATR value of 5,756 indicates that while the market is still capable of significant moves, it hasn’t reached extreme levels of volatility yet. 

Broader Market Outlook

Following Brandt’s analysis, charting expert Willy Woo agreed that the medium-term structure of Bitcoin remains bearish. However, Woo expressed optimism that the market is gradually shifting from neutral to bullish. 

He added that while Bitcoin may eventually reach a new all-time high, it would likely take time. Woo predicted a cooling-off period over the next one to three weeks before the next significant bullish attempt. 

He dismissed the idea of a strong rally in October, suggesting instead that the market would likely move sideways before experiencing a stronger uptrend toward the end of the year.

In response, Brandt remarked that when enough people adopt the “laser eyes” trend—a meme signifying bullish sentiment in the crypto community—it often signals bearish market tendencies.

Interestingly, veteran analyst Benjamin Cowen recently confirmed in a separate analysis that Bitcoin would also record observable declines this month, contrary to the “up only” sentiments across the community. This aligns with Woo’s disclosure and leans in the direction of Brandt’s report.

Meanwhile, Bitcoin has witnessed three consecutive days of declines following the 2-month peak of $66,508 on Sept. 28. BTC briefly retested the $60K region yesterday before rebounding to trade for $61,395 at press time. 

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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