Bitcoin Under Pressure After Record High: Where Is the Bottom and What to Expect Now?

Bitcoin Under Pressure After Record High: Where Is the Bottom and What to Expect Now?

Bitcoin has collapsed after hitting a new record high above $125,000 and is now looking for a way to bounce back. Key moments in recent days point to two parallel trajectories: weekend volatility and a cautious outlook for technical support levels.

What’s Happening Now

- The cryptocurrency has entered a retracement after pushing the price above $125,000. Weekend trading tends to be prone to rapid swings due to low liquidity.

- Volatility was particularly evident at Sunday’s weekly close, as the price fluctuated and traders looked for levels for a potential bounce.

- Institutional interests are in the spotlight. Experts are talking about a “depreciation trade” for Bitcoin – an attempt to protect its value against weakening fiat currencies.

Where could the bottom be and what did the technical signals suggest?

- The price recently broke above $125,000, but is currently looking for stability and a new turning point.

- One of the frequently monitored indicators is the 50-day exponential moving average (EMA). It is now located just above $118,000 on the four-hour charts. Experts point out that a retest of this level (4h EMA50) would not be a surprise and has been part of similar price developments in the past.

- Another view is offered by analyst Rekt Capital: a definitive break of $124,000 could mean a longer path up, but it would also require overcoming rebounds at this level. Rejections from $124,000 have been associated with a significant decline in the past, so now it is important whether 124k remains a resistance point.

What to expect

- Weekend moves remain unreliable price direction indicators due to lower liquidity. Investors are watching to see if supply and demand balance out again and if institutional interest will support consolidation above $118,000-$124,000.

- A break below $118,000 and a retest of $124,000 could signal the next phase of the trend. Conversely, a solid defense above $124,000 could pave the way for another test of all-time highs.

Conclusion: BTC price remains in a bottoming out phase after October high. Technical signals and institutionalization point to uncertainty, but with a possible chance for an advance as weekend volatility calms down and market liquidity strengthens.

*This is not an investment recommendation.

The Coingarage Team