Renowned commodities trader Peter Brandt has announced he’s now shorting Bitcoin (BTC), a notable move for a long-term investor in the cryptocurrency. His bearish stance stems from a technical chart formation known as a megaphone pattern.

Brandt acknowledged the intellectual challenge of holding conflicting positions, noting he remains an investor in Bitcoin for the long term while simultaneously acting as a swing trader on the short side. Back in August 2025, he suggested there was a 30% chance that Bitcoin had already reached its peak for the current cycle, even while maintaining a long-range forecast that BTC could reach $500,000 by November 2026.

The “Megaphone” Warning Sign

Brandt’s analysis points to a bearish “megaphone” pattern, which appears as a broadening wedge on the price chart. This formation is marked by increasing price volatility, with both higher highs and lower lows creating diverging trendlines. According to Brandt, this signals that both bulls and bears are growing more aggressive, and a daily close below the lower trendline could trigger a significant bearish reversal.

Bitcoin’s Recent Price Action

The trader’s warning comes as Bitcoin shows signs of volatility after hitting a new all-time high of $126,080 on October 6. The leading cryptocurrency is currently on track for its first negative-performing October since 2018. In recent trading, Bitcoin dropped to an intraday low of $106,464 before recovering to trade above the $110,000 level.