Bitcoin Rallies Past Brandt's Target Zone Amid Sharp Rebound

Veteran trader Peter Brandt's earlier bearish call on Bitcoin is facing a reality check after the largest cryptocurrency by market cap staged a sharp rebound and moved well above the $58,000-$62,000 zone he had previously identified as a potential downside target.

Brandt had said in January that $58,000 to $62,000 was where he believed Bitcoin was headed, while also acknowledging that he could be wrong. But Bitcoin's latest price action has changed the outlook considerably.

Bitcoin rallied ferociously in the past week as traders assessed the fallout from a recent spike in bond yields and a new initiative aimed at fiscal consolidation.

The cryptocurrency climbed to near $80,000 on Friday after a record short squeeze forced bearish traders out of the market. The rally seems to have been driven largely by short covering rather than a broad rush of traders taking new bullish positions.