Key Insights:
- Peter Brandt has reviewed the latest Bitcoin price rebound and questions if it is a dead cat bounce.
- Traders are watching the $85,000 support as selling pressure grows.
- Fear and Greed Index at 20 shows a market still driven by caution.
Bitcoin price came under close review this week after trader Peter Brandt examined its rebound from the fall toward the low of around $80,000.
His chart raised questions about whether the move showed a dead cat bounce as traders watched support levels and noted a cautious shift in market sentiment.
Peter Brandt Reviews the Recent Bitcoin Price Move
In a recent post on X, Peter Brandt took a direct look at the recent slide in Bitcoin price and posted a chart to show his view.
The chart marked the drop from above $120,000 to the low around $80,000 as a full five-wave correction.
He drew a simple “dead cat” note on the chart to underline the concern. His focus stayed on the area between $88,000 and $92,000.
That range has held traders in place for days, and he pointed out that it remains the zone that carries the most weight right now.
His view suggested that the recent move had the look of a reaction inside a correction rather than the start of a new upward phase.
Market watchers also commented on the lack of strong buying during the recent pullback. Bitcoin price has not pushed back above the levels that would signal firm demand.
Notably, it was argued that the structure still showed a path that leans more toward a correction.
A close above $92,000 would potentially invalidate the dead cat bounce view for BTC USD. It would show that buyers feel more confident and that the market can move beyond the range that has held it back.
A failure to break that ceiling would leave the earlier structure in place and keep the downside as a real possibility.
Traders Look for Bitcoin Price to Hold Key Support
It is worth noting that other traders share the same sentiment about the need to watch the lower levels.
For example, Ted Pillows, another market watcher, noted that BTC USD met selling pressure near $88,500 to $89,000.
He noted that the Bitcoin price could drift lower and test the $85,000 mark if the slip continues. The $85,000 level has turned into a point many traders want to see hold.
A drop through that area could open the way for another leg down. This risk grew after more than $1.2 billion in long positions were cleared during the recent breakdown.
Basically, that event lit up positions but did not show strong support coming back in.
Market activity has shown steady caution. Dip-buying has not returned in force, and the price has yet to recover areas that signal strength.
Traders continue to watch how Bitcoin price behaves near these levels because the reaction there may guide the next move.
Some believe the support zone could still hold and give the market a chance to settle. Others see room for more weakness if buyers remain quiet.
Sentiment Shifts but Stays in the Fear Zone
The Bitcoin Fear and Greed Index posted a reading of 20 this week. The number marks extreme fear, and it came with Bitcoin price trading near $86,729.
As revealed, the index showed that caution remains the main theme in the market.
A reading at this level points to concern, though it also shows a slight improvement from deeper fear points seen earlier in the decline.
Many traders follow this index because it gives a quick view of how the crowd feels.
A steady rise in the reading could suggest that confidence may return if BTC USD can hold key areas.
It is worth noting that the market often responds when sentiment begins to turn, and that shift can influence short-term decisions.
The next move depends on how the price behaves near support and whether buyers return. As of writing, the Bitcoin price was trading at $87,145.18.
If the market steadies, the index may adjust with it. If weakness continues, fear could remain in place for a longer period.
Brandt’s chart and the current sentiment both show the same point: traders want clear signs that Bitcoin is finding its footing.
Until then, the debate over a dead cat bounce will remain active as the market waits for a stronger signal.