As hopes for a robust crypto market rebound this summer begin to fade, seasoned investor Peter Brandt has drawn attention with his latest assessment. Brandt highlighted the ProShares UltraShort Bitcoin ETF (SBIT), which is designed to capitalize on Bitcoin’s decline using leveraged short positions. According to Brandt, the technical setup of this ETF points to increasing defensive sentiment in the market.
Notable technical structure in the SBIT chart
Brandt shared a chart, attributed to analyst Dan Chesler, which reveals that since the beginning of 2026, Bitcoin has slumped 29.85 percent. In the same period, the short-focused SBIT ETF has surged by 46.49 percent. This stark divergence demonstrates how prolonged pressure in the crypto market has benefited inverse products.
Mini glossary: The ProShares UltraShort Bitcoin ETF tracks roughly double the inverse of Bitcoin’s daily price movements. Due to daily rebalancing, holding these products for extended periods may yield returns that differ from exactly twice the underlying asset’s decline.
The daily chart for SBIT reportedly shows a classic inverse head-and-shoulders formation, a technical pattern often associated with the potential for a bullish reversal. Currently, the fund is testing resistance in the $61–62 range, and breaking above this level could spur further momentum.
Peter Brandt emphasized that the SBIT chart is worth monitoring for anyone anticipating either upward or downward moves in Bitcoin.
Cautious outlook persists in the market
Brandt also noted that leveraged ETF products have historically tended to favor sellers. Consequently, a potential breakout on the SBIT chart could signal not only gains for the ETF but also a renewed uptick in selling pressure on Bitcoin itself.
A similarly cautious approach is echoed by Bob Loukas, a prominent analyst known for his takes on Bitcoin cycles. Loukas estimates that the market remains in a downturn phase and projects that it may take three to five more months of volatile sideways action before a new cycle bottom is established.
Summer rally expectations diminish
Loukas’s call for caution regarding speculative digital assets, alongside Brandt’s technical warnings, signals that hopes for a strong summer rally are waning in the short term. The fact that two respected analysts are converging on the same conclusion through different methodologies has become a closely watched development among market participants.
In the analysis, a breakout above the resistance line in the SBIT chart could be interpreted by major players as a final confirmation of the prevailing bearish trend. In such a scenario, it’s considered possible that Bitcoin could hover near local lows until the start of autumn 2026.
