U.Today – Veteran trader Peter Brandt recently asked a key question that could shape the next step for Bitcoin. In a tweet, Brandt hinted at a potential market shakeout, meaning an eventual “dump” or extended period of sideways trading could occur before a major rally.
“The big question on my mind is whether Bitcoin will get another dump (or more prolonged congestion) before pumping,” Brandt wrote. “Remember, markets generally don’t tank until retail traders get tired.”
A seasoned trader's use of the phrase “congestive cut” may indicate a phase of range trading in which prices oscillate within a narrow range, frustrating both bulls and bears.
Will Bitcoin face 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 only “get worse” if retail participants run out of patience. In the coming days, all eyes will be on where Bitcoin trends next as well as the behavior of retail traders. If the answer to Brandt's question is yes, this could mean that Bitcoin's next big rally could be just around the corner — but only after more pain.
Bitcoin price movement
Cryptocurrency markets fell sharply last week; Bitcoin fell from approximately $102,735 on Tuesday to $91,187 at some point on Thursday. Major altcoins suffered larger declines on a percentage basis.
Bitcoin rebounded to highs of $95,862 on Friday, which is close to where it is currently consolidating. At the time of writing, Bitcoin was up 0.26% over the past 24 hours, reaching $94,639. Since Saturday, Bitcoin's price has moved in a narrow range from $93,670 to $94,983.
While expectations remain on the price of Bitcoin, Bitcoin analyst Willy Wu warned cryptocurrency market participants to be cautious in the coming months, with more profit taking expected in the near term.
“Risks are peaking for the first time this cycle, there is a lot of gain in shorted currencies and a lot of profit taking before we properly reset,” Woo wrote in a recent X post, noting that sentiment nonetheless appears to be improving. Bitcoin is “very bullish,” and market participants should choose a “more cautious approach” in the coming months.
