PK Press Club – Veteran trader Peter Brandt recently asked a key question that could shape Bitcoin’s next step. In a tweet, Brandt hinted at a potential market shake-up, implying that a final “dump” or extended period of sideways trading could occur before a significant rally.
“The big question in my mind is whether Bitcoin will experience further dumping (or a longer congestive chop) before the pump. Remember, markets generally don’t deteriorate until retail traders are exhausted ” wrote Brandt.
The seasoned trader’s use of the phrase “congestive cut” could refer to a range-bound trading phase in which prices oscillate within a narrow range, frustrating both bulls and bears.
Will Bitcoin experience another “dump” or extended consolidation before the next big pump? According to Brandt, the answer lies in the behavior of retail traders.
According to Brandt, markets only “go bad” when retail players lose patience. In the coming days, all eyes will be on the next trends in Bitcoin as well as the behavior of retail traders. If the answer to Brandt’s question is yes, that 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 on Thursday. Major altcoins suffered even larger declines in percentage terms.
BTC rebounded on Friday to reach a high of $95,862, which is close to its current consolidation level. At the time of writing, BTC was up 0.26% over the previous 24 hours, reaching $94,639. Since Saturday, the price of BTC has moved in a narrow range from $93,670 to $94,983.
As expectations remain on the price of Bitcoin, Bitcoin analyst Willy Woo has warned crypto market participants to exercise caution in the coming months, and further profit-taking is expected in the near term.
“Risk is peaking for the first time in this cycle, and there is a ton of profit on the coins that are selling and a lot more profit to be made before we are properly reset,” Woo wrote in a recent X article, noting that although Bitcoin sentiment appears “ultra optimistic,” market participants are expected to opt for a “more cautious approach” in the coming months.
