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Bitcoin’s Traders Are Looking for BTC to Rebound After Record $125,000

Bitcoin By
The Big Beautiful Bill Gives Bitcoin A Shot Amid Inflation
The Big Beautiful Bill Gives Bitcoin A Shot Amid Inflation

Important points

  • Bitcoin starts a retracement, after reaching new highs of $125,000.

  • BTC prices are volatile on Sunday as traders look for potential rebound levels.

  • Bitcoin is a concern for institutions “debasement trade” Talk is heating up.

BitcoinBTCAs it neared Sunday’s closing, BTC experienced new volatility after a price correction.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Analysis: 4% BTC price drop possible

The Data of Cointelegraph Markets Pro You can also find out more about the following: TradingView BTC/USD dropped below 123,000.

Two people were injured in a collision new record highs above $125,000 The weekend’s unusual trading on the derivatives markets fueled early in-day trading.

Skew the popular trader comments on price movement. warned The entire upward movement may not be a result of the move. “bait” For longs.

“Passive shorts compounding here,” He observed, in a posting on X referring traders who tried to short the price at its highs.

“Shorts opening here on the consensus that the weekend pump is bait.”

BTC liquidation heatmap (screenshot). Source: CoinGlass

The Data of CoinGlass The exchange order book showed that liquidity was taken at either end of the market price.

A lack of market liquidity makes it difficult for crypto traders to predict where the prices are going to end up.

CrypNuevo trader CrypNuevo is looking at the moving average exponential (EMA) of 50 periods on four-hour timespan, just over $118,000.

“For the week ahead, I think we could see a 4h50EMA retest – it’s overextended and you can see the retests in previous similar Price Action,” The writer wrote in English X thread. 

“After that, we should see a new move up higher. Therefore, I’m still favoring longs over shorts from the 4h50EMA.”

Chart of BTC/USDT with 50EMA. Source: CrypNuevo/X

Rekt, an analyst and trader popular in the industry, used historic comparisons as well to forecast future BTC performance. It may take some time for $124,000 to be broken, according to him.

“There’s should be no surprise that Bitcoin has rejected from ~$124k on the first time of asking in this uptrend. After all, the last time Bitcoin rejected from $124k, the rejection preceded a -13% pullback,” He reasoned.

“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.”

BTC/USD one-week chart. Source: Rekt Capital/X

Rekt Capital said that BTC/USD can drop up to 4% while still maintaining the weekly upward trend.

Bitcoin “debasement trade” The steam is gathering

The bullish take, on the other hand, is focused on institutional interest.

Related: JPMorgan, Citi see Bitcoin Q4 boom: Here are their price targets

Caleb Franzen is the creator of Cubic Analytics a financial research tool. He said there has been no price drop in BTC so far, demonstrating a significant demand.

“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,” X Updates of the Day read.

Bitcoin has been mentioned by mainstream financial commentators in relation to its position. “debasement trade,” Investors’ desire to be protected from the decline in value of fiat money.

Cointelegraph reported Analysts at JPMorgan coined the term “trend” at the beginning of this year.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.