Bitcoin Faces a Tense Week Amid Correction and Mixed Signals

The bitcoin correction, should we really be alarmed? Or is it simply an expected stage in the great crypto cycle? In an industry where euphoria often rhymes with vertigo, every shake-up reignites debates. After a stratospheric peak above $124,000, BTC retreats. For some, it’s healthy. For others, it is a weak signal of a possible reversal. One thing is certain: this week promises to be electric.

Bitcoin flirts with the peaks… then falls sharply

The upward momentum of the bitcoin price seemed unstoppable. Reaching $124,500, the flagship crypto smashed a new record. But the party was short-lived: BTC dropped more than $10,000 in a few days.

The market was caught off guard. Several traders mention crucial zones to watch. For Daan Crypto Trades, “the major levels to watch are 112K and 120K“.

But is this fall natural? Not for everyone. Trader CrypNuevo mentions a coordinated action:

Bitcoin made a new ATH, but then a manipulated organized move dumped price causing $1B in liquidations in 24h.

Bitcoin remains above its 21-day moving average, which could seem reassuring. But Material Indicators tempers: “That doesn’t guarantee a nuke, but it drastically reduces the probability of a $BTC breakout this week“.

Signals to watch: between Fed, volumes, and manipulations

Bitcoin is not falling into a void. Behind the volatility, several elements accumulate, complicating the market reading. Here are the main catalysts to watch closely in the coming days.

The Fed joins the equation

This week, all eyes turn to the Jackson Hole symposium. Fed Chair Jerome Powell will detail his vision of monetary policy there. For Mosaic Asset, “Investor attention will be fixated on Federal Reserve Chair Jerome Powell’s Jackson Hole speech, and how the Fed is viewing the balance of risks between recent weak labor market data and rising inflation“.

Uncertainty is maximal: a shift towards more accommodative rates could rekindle appetite for risky assets… or the opposite.

Decreasing volumes

Another worrying signal: lack of volume. Trader Roman sounds the alarm: “Now $BTC is down $10,000 from prior highs. The lack of volume has been extremely concerning for the past few months“.

This weakness calls into question the solidity of the last peak reached.

Coinbase and Binance, two rooms two atmospheres

Strangely, the Coinbase Premium remains high. This means US buyers continue to pay more than on Binance. Analyst Cas Abbe wonders: “Either the buyer is Saylor only, who has been twapping for days“.

Altcoins, Bitcoin, and liquidity: towards a high-tension trajectory

The crypto market now seems suspended on a fragile balance. As bitcoin enters its seventh week of uptrend, some see a historic limit.

The next step? Maybe a temporary pullback… or a new departure.

Five landmarks to understand this crypto week

• $124,500: last historic bitcoin peak before its sharp fall;
• $1 billion: liquidations in 24h, according to CrypNuevo;
• $114,000: major support level to watch;
• 7 weeks: duration of the last BTC bullish phase;
• Jackson Hole: central event for Fed decisions this week.

Bitcoin passes through a turbulent zone, but some see a simple breathing space. The famous trader Peter Brandt, with his decades of charts, even foresees a spectacular rise. According to him, BTC could climb up to $280,000 by the end of the year, provided post-halving cycles repeat. If this prediction proves true, the hardest part… might already be over.