- Brandt rejects the bull flag, cites continued bearish structure and descending channel dominance.
- Bitcoin remains under pressure, trading below key moving averages and weak momentum.
- Long-term outlook still targets recovery, but only after a confirmed breakout.
Bitcoin — BTC, is trading inside a tight descending range while pressure continues to build across the market. Veteran trader Peter Brandt has dismissed expectations of an immediate bullish breakout. He argued that the current structure does not meet classical bullish continuation standards. According to his view, the market still leans toward further weakness before any meaningful recovery into 2026. Weekly chart behavior shows a clear descending channel controlling price movement with steady downside pressure. Brandt also expects a broader cycle bottom to form around September or October 2026.
Descending Channel Dominates Price Action
Peter Brandt analyzed the weekly BTC/USD chart and rejected the idea of a valid bull flag. He referenced classical charting principles developed by Schabacker, Edwards, and Magee. These standards define bull flags as short consolidation phases lasting about six to eight weeks. The current pullback has already stretched beyond that range. That duration alone weakens the bullish continuation argument.
Bitcoin now trades below both the 8-period and 18-period moving averages. These levels continue to reinforce downside momentum across the weekly timeframe. Brandt also pointed to a prior breakdown from consolidation as the key structural shift. That breakdown remains visible and continues to shape overall price direction. A red signal marked on the chart highlights that failure point clearly.
The Average Directional Index adds more context to the current trend. The weekly ADX reading sits near 28.27, showing strong directional pressure. Brandt noted that this reading supports the idea of an ongoing established trend rather than a reversal. Price action continues to respect the descending channel without any confirmed breakout attempts.
Market behavior remains cautious as Bitcoin repeatedly struggles near resistance zones. Buyers have not managed to build consistent momentum across recent sessions. Trading activity reflects hesitation, with rallies losing strength quickly. The broader structure still favors consolidation inside a downward slope. Until price escapes this channel, bearish conditions remain dominant.
Long Term Outlook and Key Levels
Despite the short-term weakness, Brandt still holds a long-term bullish target. His chart points toward a potential cycle peak near 127,500 dollars. That level sits along the upper boundary of the broader trend projection. However, reaching that target requires a confirmed breakout from the current descending structure.
On the downside, Brandt identifies 24,825 dollars as a long-term floor. That level represents a major multi-year support zone on his analysis. The market has not challenged that area recently, but it remains part of the broader framework. Brandt emphasized that a new uptrend will only begin after a confirmed reversal.
He described a breakout above the descending channel as the key trigger. Without that signal, the market remains in a corrective phase. He expects price action to continue moving within the channel until that shift appears. For now, Bitcoin remains in a waiting phase.
