“Dead Cat” Signals on Bitcoin

Veteran trader Peter Brandt has once again caught the market’s attention by sharing a Bitcoin chart with a hand-drawn formation he describes as a “dead cat.” According to him, the two-week drop from above $120,000 to the low $80,000 range resembles a complete five-wave corrective move. The recent bounce, in his view, is only a technical reaction rather than a sign of a trend reversal.

For several days, Bitcoin has been trading within a narrow $88,000–$92,000 range, which Brandt sees as a key zone. The market has clearly weakened over the past week: liquidity has thinned, order books have become sparse, and bid–ask spreads have widened. ETF flows have also been unstable. BlackRock’s IBIT recorded a series of outflows, while smaller funds produced mixed results, weakening the previously steady inflow of capital.

During the decline, more than $1.2 billion worth of long positions were liquidated. This cleaned out part of the market but did not create any new buying strength. There was no strong dip-buying, and Bitcoin has not regained levels that would indicate renewed demand. The overall structure still looks like a correction rather than the beginning of a fresh upward trend.

The situation may only shift if BTC manages to close above $92,000. Should that happen, the “dead cat” narrative would lose relevance, and investor sentiment could improve. However, if the $92,000 level proves difficult to break once again, the bearish scenario may continue to dominate.