Bitcoin rallied ferociously in the past week as traders assessed the fallout from a recent spike in bond yields and a new initiative aimed at fiscal consolidation.
Bitcoin extended gains to near $80,000 on Friday after a record short squeeze forced bearish traders out of the market. The cryptocurrency climbed in a five-day streak, rising from a low of $62,679 on August 17 to $79,500 on August 21 before it slightly retreated.
At the time of writing, $BTC was down 0.84% in the last 24 hours to $76,569 and up 21.56% weekly. Bitcoin last traded at $80,000 in May.
The rally seems to have been driven largely by short covering rather than a broad rush of traders taking new bullish positions.
Right or wrong?
Months after the October 2025 flash crash, in which a record $20 billion liquidation occurred, Brandt had projected $58,000–$62,000 for Bitcoin.
That scenario played out for a period, with Bitcoin trading in the $58,000–$62,000 range months after his prediction. Bitcoin dropped to a low of $57,717 on July 1 and traded sideways for months. However, the market reversed.
Brandt explained his reason for the bearish Bitcoin outlook, saying that there was reason to have expected a downside move in Bitcoin. In an X post in the past week, Brandt noted that an inverted H&S with a belabored right shoulder has a 60/40 chance of being resolved to the downside, and Bitcoin's trend was down. However, the completion of the H&S bottom changed this, adding that he 'bought the breakout for better or worse.'
Speaking on Bitcoin's recent price action, Brandt highlighted the presence of walls: "Does anybody remember when I posted about Price Walls (a decades-old TA tool) at the $BTC bottom in 2021? Well, we are here again."
u.today
