- Bitcoin retraced after reaching a new all-time high above $125,000 over the weekend.
- Traders saw increased price swings on Sunday, with some eyeing a possible price rebound.
- Institutional demand remains a key focus as talk grows around Bitcoin as a hedge against currency devaluation.
- Analysts expect that a drop of up to 4% would still leave Bitcoin’s upward trend intact.
- Market watchers point to technical indicators, such as the 50-period exponential moving average, to predict potential support levels.
Bitcoin experienced sharp price movement as the cryptocurrency’s value fell from newly set all-time highs above $125,000. The retracement happened during Sunday trading, which often sees lighter activity and higher volatility.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin dropped under $123,000 after surging on strong derivatives market activity. Traders reported that some investors may be betting prices would fall following the weekend’s upward move, with passive short positions increasing near the highs.
Market analysis highlighted the possibility of a further decline. A popular trader known as CrypNuevo suggested that a retest of the 50-period exponential moving average (EMA) on the four-hour chart, currently above $118,000, could act as a support level. CrypNuevo stated on X: “For the week ahead, I think we could see a 4h50EMA retest… After that, we should see a new move up higher. Therefore, I’m still favoring longs over shorts from the 4h50EMA.” Analyst Rekt Capital added that a drop of up to 4% would still align with Bitcoin’s long-term upward trend. He noted on X, “Bitcoin needs to prove this $124k resistance is a weakening point of rejection. And any shallower dip or pullback from here would do just that.”
Meanwhile, institutional presence in the market continues to draw attention, especially as more investors turn to Bitcoin as a protection against fiat currency devaluation. Financial analyst Caleb Franzen commented that the minimal pullbacks and substantial spikes to the upside are often associated with institutional buying. On X, Franzen observed, “When I see short-term price action like this, with minimal pullbacks and large spikes to the upside followed by sustained bids, I see institutions.”
Mainstream finance commentators are increasingly referring to Bitcoin as part of the “debasement trade,” a trend where investors seek assets that may hedge against currency value declines. This term was highlighted by analysts at JPMorgan, and others note the cryptocurrency’s performance alongside Gold as investors look for safety from inflation.
This article presents factual information and does not provide investment advice.
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