While the expectation of a strong recovery in the cryptocurrency market in the summer months faded, the evaluation shared by experienced investor Peter Brandt attracted attention. Brandt pointed to the chart of ProShares UltraShort Bitcoin ETF SBIT, which aims to benefit from the decline in Bitcoin price with two-way leverage. According to the analyst, the technical outlook of this product indicates that the defensive tendency in the market may gain strength.
Technical structure featured on the SBIT chart
According to the chart sent to Brandt and sourced from analyst Dan Chesler, Bitcoin has declined by 29.85% since the beginning of 2026. In the same period, short position-oriented SBIT increased by 46.49%. This chart reveals how long-term pressure on the crypto market is reflected in reversal products.
Mini glossary: ProShares UltraShort Bitcoin ETF is an exchange-traded fund that aims to track daily declines in the price of Bitcoin in an upside direction of approximately twofold. Because returns on such products are rebalanced daily, performance may not be exactly twice the inverse of the underlying asset when held for long periods of time.
It is reported that a classic inverted head and shoulders formation has formed on the SBIT chart in the daily time frame. In technical analysis, this structure is often associated with the possibility of an upward trend reversal. It is stated that the fund is currently testing the resistance zone between 61 and 62 dollars, and if this level is exceeded, the movement may gain momentum.
Peter Brandt emphasized that the SBIT chart is worth watching for anyone who expects a rise or fall in Bitcoin.
Cautious outlook continues in the market
Brandt also stated that the operation of leveraged ETF products has historically been able to provide an advantage to sellers. For this reason, it is considered that a possible upward break could be considered an important signal not only for SBIT but also for the re-acceleration of the selling pressure on Bitcoin.
A similar cautious approach was expressed by Bob Loukas, known for his analysis of Bitcoin cycles. Loukas stated that the market is still in the decline phase and that he calculates that sharp horizontal movements that may last 3 to 5 months may be seen before a new cycle bottom is formed.
Summer rally expectations weakened
Loukas’ call for investors to be careful about speculative digital assets, when evaluated together with Brandt’s technical warning, indicates that the possibility of a strong summer rally in the short term is weakening. The fact that two analysts reached similar results using different methods was a development that was carefully watched by market players.
In the analysis, it was stated that if the resistance line on the SBIT chart is broken up, this could be seen as the final confirmation of the downward trend for the major players. In such a scenario, it is considered possible that the Bitcoin price will remain close to local bottoms until the beginning of autumn 2026.
