U.Today - Veteran trader Peter Brandt recently posed a key question that could shape Bitcoin’s next move. In a tweet, Brandt hinted at a potential shakeout in the Bitcoin market, implying that a final "dump" or extended period of sideways trade might occur before a large rally.
"The big question in my mind is whether Bitcoin will get one more dump (or more lengthy congestive chop) before the pump. Remember, markets generally do not sour until retail traders get worn out," Brandt wrote.
The veteran trader’s use of the phrase "congestive chop" might refer to a phase of range-bound trading in which prices oscillate within a narrow range, frustrating both bulls and bears.
Will Bitcoin experience another "dump" or a prolonged consolidation before the next big pump? According to Brandt, the answer lies in the behavior of retail traders.
According to Brandt, markets do not "sour" until retail participants lose patience. In the coming days, 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 might imply that Bitcoin’s next significant rally might just be around the corner — but only after a little more pain.
Bitcoin price action
Crypto markets fell sharply in the past week; Bitcoin tumbled from nearly $102,735 on Tuesday to $91,187 at one point on Thursday. Major altcoins suffered even larger declines on a percentage basis.BTC rebounded to highs of $95,862 on Friday, which is close to where it is presently consolidating. At the time of writing, BTC was up 0.26% in the previous 24 hours, reaching $94,639. Since Saturday, the BTC price has moved in a narrow range of $93,670 to $94,983.
While expectations remain on Bitcoin price, Bitcoin analyst Willy Woo has warned crypto market participants to exercise caution in the coming months, with further profit-taking expected in the near term.
"Risk is peaking for the first time in this cycle, and there’s a ton of profit in coins that have been selling and plenty more profit-taking to go before we are properly reset," Woo wrote in a recent X post, noting that although Bitcoin sentiment seems "uber bullish," market participants should opt for a more "cautious approach" in the coming months.