Bitcoin’s Bounce to $113,000 Sparks Hope, but Peter Brandt Warns of Bearish Trap

• Bitcoin rebounds to $113,000, but Peter Brandt warns danger ahead.
• Options expiry and bearish signals raise volatility risks for traders.
• Altcoins rally strong as macro events shape crypto’s uncertain outlook.

Bitcoin rebounded 2.1 percent in the past 24 hours to trade around $113,144, sparking optimism among traders. Altcoins recorded good performances as well, with Solana gaining more than five percent to $211.4 and Cronos surging 56.8 percent to $0.35. This resulted in an increased crypto market cap by 1.5 percent to approximately $3.99 trillion.

Legendary trader Peter Brandt believes this relief rally may be misleading. He cautions that Bitcoin might not disappear until it overtakes the $117,570 support zone. This view is in line with his previous prediction that the highest point of Bitcoin in this cycle can be between $120,000 and $150,000.

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Bearish Setup Signals Caution

Brandt explained that Bitcoin is currently locked in a distribution phase after last weekend’s sell-off. In the weekly chart, he indicated a potential occurrence of a possible double top phenomenon and a divergence of bearishness on the Relative Strength Index. Such signs, he said, are indicative of a possible recession in the face of the current rebound.

The impending expiry of options at the end of the month adds to this pessimistic sentiment. According to market data, Bitcoin’s max pain is $116,000, and Ethereum’s is $3,800. These levels tend to bring prices nearer to the expiry date, which raises the chances of market swings.

Macro Events and Market Outlook

Traders are also preparing for key macro developments. Data from Kalshi indicates a 78 percent probability that the Federal Reserve will cut rates by 25 basis points in September. Inflation data and the impending FOMC report will likely direct further market direction.

Moreover, Treasury Secretary Scott Bessent affirmed that the eleven Federal Reserve chair applicants will be interviewed after Labor Day. This comes after President Donald Trump has continued to increase his influence in the Fed, most recently through the removal of Governor Lisa Cook.

In the meantime, the crypto sector awaits the authorization of several spot altcoin ETFs by the U.S. SEC. Together with the GENIUS Act to make regulation more explicit, high institutional interest may alleviate downward market pressure.

Conclusion

The short-term spurt in Bitcoin has boosted confidence, though Peter Brandt has raised red flags. Options expiry, interest rate decisions, and regulatory shifts may decide whether the rebound holds or fades.

Also Read: Pundit to XRP Holders: “It’s Bigger Than You Think” – Here’s What it Means

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