What to Know
- Peter Brandt highlights bearish SBIT pattern threatening Bitcoin recovery hopes.
- SBIT approaches critical resistance zone after outperforming Bitcoin this year.
- Bob Loukas expects months of consolidation before Bitcoin recovers.
Veteran trader Peter Brandt has identified a chart pattern that could strengthen the bearish outlook for Bitcoin, placing renewed focus on a market signal that many traders are now watching closely. According to Brandt, the setup is not appearing on Bitcoin itself but on the ProShares UltraShort Bitcoin ETF (SBIT), a fund designed to deliver twice the inverse daily performance of Bitcoin. Because the ETF rises when Bitcoin falls, strength in SBIT often reflects growing bearish sentiment toward the leading cryptocurrency.
Brandt shared a chart originally sent by analyst Dan Chesler, highlighting an inverted Head and Shoulders formation developing on the daily timeframe. Traders generally view this pattern as a bullish signal for the asset displaying it, suggesting that SBIT could be preparing for another move higher. The timing of the setup is notable because Bitcoin has already experienced a difficult year. Since the beginning of 2026, Bitcoin has declined by nearly 30%, while SBIT has gained more than 46% during the same period. Those contrasting performances underline the extent of the market’s weakness and explain why traders are paying close attention to the ETF’s next move.
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Resistance Break Could Strengthen Bearish Bitcoin Outlook
According to Brandt, SBIT is currently testing an important resistance area between $61 and $62. A move above that range would confirm the breakout and potentially trigger additional upside momentum for the inverse fund. For Bitcoin holders, however, that scenario could signal more trouble ahead. Since SBIT benefits from Bitcoin declines, a successful breakout would likely coincide with renewed selling pressure across the cryptocurrency market.
Brandt noted that the chart remains important regardless of whether traders are bullish or bearish on Bitcoin. He also pointed out that leveraged inverse products have historically rewarded investors who correctly anticipated prolonged market downturns. Moreover, another respected market analyst, Bob Loukas, has expressed a similarly cautious outlook. According to Loukas, Bitcoin remains in a bearish cycle and may require several more months of consolidation before establishing a stronger foundation for recovery.
Loukas estimated that the market could spend three to five months moving sideways before conditions become favorable for a new bullish phase. Additionally, he advised investors to remain cautious when dealing with highly speculative assets during the current environment. The combination of Brandt’s technical warning and Loukas’ cycle analysis has added to concerns that expectations for a strong summer rally may be overly optimistic. If the pattern identified by Brandt confirms with a breakout, bearish sentiment could strengthen further and delay hopes for a meaningful Bitcoin recovery in the near term.
