Pakinomist – Veteran trader Peter Brandt recently asked a key question that could shape Bitcoin’s next move. In a tweet, Brandt hinted at a potential shakeout in the market, suggesting that a final “dump,” or extended period of sideways trading, may occur before a major rally.
“The big question in my mind is whether Bitcoin will have another dump (or more prolonged congestive chop) before the pump. Remember, markets generally don’t turn sour until retailers wear out,” Brandt wrote.
The veteran trader’s use of the term “congestive chop” may refer to a phase of range-bound trading where prices fluctuate 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 retailers.
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 retailers. If the answer to Brandt’s question is yes, it could mean that Bitcoin’s next significant rally may be just 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 bigger declines on a percentage basis.
BTC returned to highs of $95,862 on Friday, which is close to where it is currently consolidating. At the time of writing, BTC had risen 0.26% in the previous 24 hours to reach $94,639. Since Saturday, the BTC price has moved in a narrow range of $93,670 to $94,983.
While expectations remain on the 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 is a ton of profit in coins that have been sold and plenty more to go before we properly reset,” Woo wrote in a recent X post, noting that Although Bitcoin sentiment seems “uber bullish”, market participants should choose a more “cautious approach” in the coming months.
