As Bitcoin slips below $86,000 amid a broader market cooldown, renowned trader Peter Brandt has added to the growing caution among investors, suggesting a potential correction toward $70,000 in the short term. The warning comes just hours before the release of key U.S. PCE inflation data, which could influence the Federal Reserve’s next rate move and, by extension, the crypto market’s direction.
At the time of writing, Bitcoin (BTC) is trading just under $86,000, marking a 1.4% daily decline. Trading volume also fell by 2.4%, reflecting broader risk-off sentiment as investors await macroeconomic clarity. Within the last 24 hours, Bitcoin saw a high of $87,702 and a low of $85,837.
Although some short-term models suggest a possible recovery to $88K by month-end, weakening futures open interest, down over 1.5%, suggests traders are growing increasingly cautious.
Veteran market analyst Peter Brandt echoed these bearish undertones by sharing a chart on X that outlines potential downside targets at $76,700 and $70,000. The chart originated from fellow analyst HTL-NL, who detailed a bearish structure forming on the current BTC price chart.
Brandt’s comment—“This is not an unreasonable expectation”, indicates that the seasoned trader sees a realistic path toward deeper correction if selling pressure accelerates.
Key Catalyst Ahead: U.S. PCE Inflation Data
Investor focus now shifts to the Personal Consumption Expenditures (PCE) inflation report, due later today. The data is closely watched by the Federal Reserve in formulating its interest rate policy.
Should the inflation data show further cooling, it may strengthen the case for a dovish Fed pivot, potentially providing a tailwind for Bitcoin and other risk assets. Lower interest rates typically make yield-seeking investments like crypto more attractive, particularly in an environment of cooling inflation.
Despite the short-term jitters, not all analysts are bearish.
- Javon Marks recently projected a bullish trajectory, comparing the current cycle to Bitcoin’s past rise from $19,000 to $67,543. If history repeats, Marks believes BTC could climb to $116,600–$118,800.
- Popular analyst Michael van de Poppe also noted strong buy-side absorption, stating that “buying pressure is building up.”
- Van de Poppe suggests that if Bitcoin can clear the $90,000 resistance level, a strong run in Q2 could still be on the cards.
What’s Next
With macroeconomic data looming and top analysts split between cautious pullbacks and explosive upside, the coming days could prove pivotal for Bitcoin. If inflation data meets expectations, bulls may regain momentum. But if macro headwinds persist or Brandt’s bearish scenario plays out—a retest of support around $76K or even $70K could be imminent.
Investors should remain alert, as Bitcoin’s path will likely be shaped by both technical signals and macroeconomic catalysts over the coming weeks.
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