Veteran trader Peter Brandt has pointed to the possibility bitcoin could head lower next.

U.Today, a blockchain media outlet, reported on Aug. 10 that Brandt has not yet placed a direct bet on bitcoin’s move, but sees a higher chance of a decline for now.

On X, formerly Twitter, Brandt said, "I am not in the bet yet, but if I were to bet it would be for a decline." Bitcoin has traded in a relatively narrow range since a sharp early-summer drop. Its rebound momentum also looks limited after it failed to regain a key resistance level around $67,260.

Brandt cited a large head-and-shoulders pattern formed between April and June. Bitcoin rose to the upper $70,000s in mid-to-late April to form the left shoulder, then climbed to about $82,000 in May to form the head. It then rebounded to the upper $70,000s from late May to early June, forming the right shoulder.

The neckline for the pattern formed around $75,000. Bitcoin broke below that level in early June and fell to below $60,000 as selling pressure intensified. In Brandt’s chart, an arrow indicating a downside target extends to around $58,000, leaving open the possibility of retesting this year’s lows.

Conditions for a short-term rebound were also laid out. Analyst Ted Pillows said bitcoin needs to post a closing price above $65,000 to revive a bullish trend. He also said buyers could regain control only if bitcoin breaks through the $67,260 to $68,000 range.

Supply-and-demand pressures are also persisting as large holders continue to sell. On-chain analytics platform Lookonchain said a whale investor recently sold an additional 1,019 BTC, worth about $66.4 million. The whale was estimated to have sold about $486.9 million worth of bitcoin over the past 3 weeks.

With bitcoin still failing to regain key resistance levels and large holders continuing to sell, market attention is turning more to a retest of lower levels than an upside breakout in the short term. While bitcoin remains below the key resistance zone, the market is watching both conditions for a technical rebound and the possibility of another test of the downside.

I am not in the bet yet, but if I were to bet it would be for a decline pic.twitter.com/lLrcGM371V