Peter Brandt, Larry Fink, and NYDIG weigh in on Bitcoin cycle low and reversal signals

Peter Brandt identifies potential chart pattern

Peter Brandt, a seasoned trader known for his technical analysis expertise, pointed out a possible “inverted head and shoulders” bottom pattern emerging in Bitcoin’s price chart. He brought attention to this technical development through his account on X, highlighting that the pattern appears “very, very unconventional” and cautioning that it is too early to confirm its validity at this stage.

Brandt emphasized that, should the pattern continue to develop as observed, it might signal a reversal of momentum for the leading cryptocurrency. However, he maintained that traders and investors would need to watch closely before drawing firm conclusions regarding future price action.

Brandt mentioned that while the formation could indicate a shift in trend, its unorthodox appearance and early stage mean further confirmation is required before market participants can fully rely on this signal.

Technical patterns such as the “inverted head and shoulders” are commonly used to identify major trend reversals in financial markets but often demand confirmation through additional price movements and trading volume.

Mini dictionary: Inverted head and shoulders, a technical chart pattern that often signals a potential reversal from a bearish to bullish trend, characterized by three troughs with the middle one being the lowest.

BlackRock CEO Larry Fink expresses renewed optimism

Larry Fink, CEO of BlackRock, one of the world’s largest asset management firms, addressed recent shifts in his perspective about Bitcoin’s risk environment. In a recent interview with CNBC, Fink stated that he formerly viewed the crypto market as unstable due to widespread excessive leverage. However, he now regards the ecosystem as substantially more stable after a significant shakeout, which removed many speculative positions.

Fink underlined his evolving stance, noting that after a “major market shakeout,” he perceives greater stability in Bitcoin and the wider digital asset landscape.

Beyond digital assets, Fink also expressed a positive outlook for traditional financial markets over the coming year, marking a broader sense of confidence among institutional investors.

Institutional research highlights cycle risks

New York Digital Investment Group (NYDIG), a firm specializing in Bitcoin investment strategies and research, observed that Bitcoin’s current drawdown for the 2025–2026 period closely resembles declines witnessed in previous four-year cycles, including those in 2014, 2018, and 2022. The group stated that, based on historical data, the potential duration and depth of the ongoing correction could result in a cycle low priced between $38,000 and $39,000 later in the year.

NYDIG’s research shows Bitcoin is currently trading at a level almost 50% below its record peak of roughly $126,000 reached in October 2025.

In the near term, Bitcoin managed a rebound of about 12%, climbing up from a low near $58,000. This move was largely supported by a bullish divergence in the weekly Relative Strength Index (RSI), a technical indicator often used to assess momentum shifts.

Mini dictionary: NYDIG, also known as New York Digital Investment Group, is a financial services and technology firm specializing in Bitcoin investment solutions and institutional research.

Despite this rally, upward momentum has faced resistance at $65,000, with analysts monitoring for sustained breakthroughs. In comparison, Ethereum and Link are also contending with long-term descending resistance, yet observers note Bitcoin remains a distance from similar resistance zones.