Peter Brandt Dismisses Bitcoin Breakout, Says Trend Not Yet Reversed

Bitcoin briefly surged past $86,000 on Tuesday, reaching levels not seen since early April, before slipping back slightly.

The move coincided with renewed interest in digital assets following a high-profile meeting between former U.S. President Donald Trump and El Salvador’s President Nayib Bukele. Speculation swirled around Trump’s broader economic strategy, including possible plans to build up Bitcoin reserves using tariff revenue.

Investor sentiment was also buoyed by data showing large holders—known as whales—have resumed accumulating Bitcoin. Glassnode reports that wallets containing between 1,000 and 10,000 BTC have grown significantly since early March, a trend last seen ahead of a major rally in April 2024.

That resurgence in whale activity comes as gold continues to hold firm and market volatility, measured by the VIX, remains subdued.

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From a technical standpoint, Bitcoin has broken above a long-standing descending trendline, a move that typically signals a potential shift in direction. However, not everyone is convinced. Veteran trader Peter Brandt downplayed the significance of the breakout, arguing that trendline breaks alone don’t confirm reversals. In his view, only a consistent close above $88,000 would validate a full recovery from this year’s pullback.

Despite the cautious take from Brandt, optimism is growing across the broader crypto space, with coins like Solana and XRP also gaining traction. Whether this momentum holds or fizzles will likely depend on macro developments and how key resistance levels are handled in the days ahead.

Alexander Stefanov