Why Peter Brandt Expects Bitcoin (BTC) to Fall
Peter Brandt, a veteran dealer with many years of market expertise, has taken a brief place in Bitcoin futures.
Despite being a long-term holder of BTC, Brandt is buying and selling in opposition to it within the quick time period based mostly on technical indicators that recommend additional draw back is feasible.
Broadening Pattern Indicates Risk
On the day by day chart, Brandt identified a broadening formation, generally referred to as a megaphone sample. It exhibits 5 distinct swings, with the newest high close to $126,000. After this high, Bitcoin moved right into a sideways vary between $106,000 and $116,000 earlier than dipping beneath the south boundary.
Currently, the worth sits close to $109,500, following a 2% drop up to now day and a couple of% over the past week. This breakdown beneath the vary helps Brandt’s short-term bearish setup. If the transfer continues, potential value ranges to watch embody $97,000 and $84,721.
Order Book Shows Liquidity Above Price
Market knowledge from Coinglass exhibits that many of the order e book liquidity sits above the present value. The $113,000 to $116,000 vary incorporates giant clusters of restrict orders and stop-losses. Rekt Fencer posted,
All $BTC liquidity is sitting above the present value.
Just one pump and shorts get wiped.
Is the V-reversal loading proper now? pic.twitter.com/57OzobYCei
— Rekt Fencer (@rektfencer) October 31, 2025
A sudden transfer greater may set off quick liquidations, main to a fast value bounce. Below present ranges, there are fewer giant orders, which can weaken help on the way in which down.
Notably, Bitcoin has a historical past of enormous drawdowns after hitting the higher boundary of its long-term pattern channel. Past rejections have led to drops of 84% and 77%. The newest chart exhibits one other rejection close to this identical trendline, with a possible 73% decline if the sample holds.
Rekt Fencer added,
“Every time Bitcoin rejects this line, it dumps 70%… Hope you’re prepared for $BTC at $40,000.”
A transfer towards that zone would match the decrease boundary of the multi-year channel.
Rate Cut Sparks Market Reaction
The Federal Reserve’s current 0.25% fee reduce led to volatility throughout markets. Bitcoin briefly fell beneath $108,000 after Fed Chair Jerome Powell’s comments, as merchants reacted to the coverage shift. Some described it as a basic “purchase the rumor, promote the information” occasion.
Meanwhile, on-chain knowledge shows falling BTC balances on exchanges, suggesting decreased provide. As CryptoPotato reported, giant transactions above $1 million have additionally reached a two-month high, which factors to continued curiosity from giant holders. However, the asset stays beneath stress as short-term uncertainty persists.
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