Peter Brandt's Warning: Bitcoin May Drop Again to $58,000

Peter Brandt, a veteran trader in financial markets, has a cautious and bearish outlook on Bitcoin's next move. He noted the formation of a "head and shoulders" pattern on the Bitcoin chart, stating that if he were to make a trade on the next movement of this cryptocurrency, he would choose a bearish scenario.

According to Mihan Blockchain, Bitcoin's price continues to fluctuate within a relatively tight range after a severe correction in recent months and is struggling to reclaim the important resistance level of $67,260. On the other hand, continued selling by large Bitcoin holders could exert more pressure on the price and increase the likelihood of testing this year's lows again.

What Signal Does the Head and Shoulders Pattern Hold for Bitcoin?

In his analysis, Brandt referred to a large head and shoulders pattern that has formed on the Bitcoin chart from April to June. In this pattern, the left shoulder was formed with the price rising to the mid to upper range of $70,000 in April. Then, Bitcoin rose to about $82,000 in May, creating the main peak or the "head" of the pattern.

Subsequently, the price returned to the upper range of $70,000 again, and the right shoulder of the pattern was formed in late May and early June. Brandt has drawn the neckline of this pattern at around $75,000.

Bitcoin lost this support in early June and subsequently entered a downward wave that brought the price down from around $75,000 to below $60,000. Brandt has set a target close to $58,000 for the continuation of this movement on his chart; a level that, if reached, could mean Bitcoin's return to the lows of 2026.

However, Brandt emphasized that he has not opened a trade on either of the two bullish or bearish scenarios yet. He wrote on social media platform X:

I have not entered a trade yet, but if I were to speculate on it, a price decrease would be my likely scenario.

Reclaiming $68,000 is Important for Bulls

Despite Brandt's bearish scenario, some analysts believe Bitcoin still has a chance to return to an upward trajectory. Ted Pillows, a market analyst, previously stated that closing above $65,000 could be a sign of a revival of bullish momentum.

In this context, a sustained price movement of Bitcoin above the range of $67,260 to $68,000 is even more significant. Such a movement could temporarily hand control of the market back to buyers and weaken the current bearish scenario.

Heavy Selling by Whales Continues

The selling pressure is not limited to technical charts. Data from the on-chain analysis platform Lookonchain also shows that one of the major market whales recently sold 1,019 Bitcoins worth approximately $66.4 million.

This whale has sold a total of 7,513 Bitcoins worth about $486.9 million over the past three weeks. The continuation of such sales by large investors could exert more pressure on Bitcoin's price in the short term, especially if new demand cannot absorb this volume of supply.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.