Veteran trader Peter Brandt believes Bitcoin may be forming a potential bottoming pattern, but he has made it clear that it is far too early to say whether a full recovery is underway.
In a post shared on July 16, Brandt pointed to what could be an inverted head-and-shoulders pattern developing on Bitcoin’s chart. However, he described the setup as “very, very unconventional” and emphasized that the pattern has not yet been confirmed.
His message was simple: the possibility exists, but the evidence is not strong enough to call a market bottom.
An inverted head-and-shoulders is a chart pattern that traders often view as a bullish signal. It forms when price creates three lows, with the middle low falling deeper than the other two. Typically, traders wait for the price to break above a key resistance level, known as the neckline, before considering the pattern confirmed.
So far, Bitcoin has not achieved that breakout.
Bitcoin was trading near $64,000 on July 16 after failing to maintain momentum above $65,000. The cryptocurrency has recovered significantly from its recent low below $58,000, gaining roughly 12%, but the rally has struggled to move beyond the current resistance area.
The inability to hold above $65,000 suggests that buyers are still facing challenges and that market confidence remains uncertain.
Brandt has been cautious about Bitcoin’s outlook for several months. Earlier in the year, he warned that Bitcoin could fall into the $58,000 to $62,000 range, a prediction that eventually proved accurate during the recent market downturn.
While Bitcoin’s rebound has been supported by improving market sentiment and softer U.S. inflation data, some analysts believe the recovery still lacks strong underlying demand.
Recent research from Bitfinex suggested that much of Bitcoin’s recent strength came from changing expectations around interest rates rather than strong organic buying from investors. The report described the rally as “borrowed strength,” arguing that key indicators of spot demand remain weak.
Analysts noted that demand from spot buyers has been inconsistent, while flows into U.S. spot Bitcoin ETFs have also been mixed. Although ETFs attracted fresh inflows after recent market volatility, the overall trend has not yet shown the steady buying pressure typically seen during stronger bull markets.
Because of this, some market observers remain cautious despite Bitcoin’s recent recovery.
Bitfinex analysts identified the $68,000 to $68,300 area as a major resistance zone. A successful move above that range, supported by stronger ETF inflows and consistent spot buying, could improve the outlook for Bitcoin and increase confidence that a larger recovery is underway.
At the same time, bearish scenarios have not completely disappeared.
Some analysts continue to monitor lower price targets, arguing that if Bitcoin follows patterns seen in previous market cycles, deeper corrections could still be possible. However, those forecasts depend on historical trends repeating themselves and are far from certain.
For now, Brandt is not claiming that Bitcoin has reached a definitive bottom. Instead, he sees the early signs of a possible bullish pattern that could develop if market conditions improve.
The next phase for Bitcoin will likely depend on whether it can break through key resistance levels, attract stronger spot demand, and maintain healthy ETF inflows. Until then, the debate over whether the recent rebound is the start of a new uptrend or simply a temporary recovery remains open.
