Bitcoin faced renewed turbulence heading into Sunday’s weekly close, with the price slipping after briefly touching new record highs.
4% Correction Still on the Table
Data from TradingView showed Bitcoin dropping below the $123,000 mark after hitting highs above $125,000 earlier in the day — a move largely driven by weekend derivatives activity.
Market analyst Skew noted that the sudden jump might have been a “trap” for overconfident long positions.
“Passive shorts are stacking up here,” he wrote on X, suggesting that traders were quick to short the rally.
According to him, “many believe this weekend surge was just bait for longs.”
CoinGlass data indicated that liquidity was being cleared on both sides of the market, a common occurrence during weekends when trading volumes are typically thinner and moves less reliable.
Looking for a possible floor, trader CrypNuevo pointed to the 50-period exponential moving average (EMA) on the 4-hour chart, now sitting slightly above $118,000.
“For the coming days, I expect a retest of the 4h 50 EMA — price looks stretched, and we’ve seen similar setups before,” he explained in a post on X.
“After that, I’m leaning more toward longs than shorts from that zone.”
Another well-known analyst, Rekt Capital, compared the current setup to previous market cycles, highlighting $124,000 as a level that might take time to decisively break.
“It’s not surprising that Bitcoin faced rejection at around $124K on the first attempt,” he said. “The last time we saw a rejection there, the market dropped about 13%.”
He added that a small dip — even up to 4% — would still keep Bitcoin within a healthy uptrend on the weekly timeframe.
Institutional Demand Still in Play
Despite the short-term pullback, analysts remain optimistic, pointing to increasing institutional participation as a sign of strength.
Caleb Franzen, founder of Cubic Analytics, noted that the limited number of corrections and strong upward pushes suggest large buyers are active in the market.
“When I see strong spikes with shallow retracements followed by sustained bids, that’s typically institutional behavior,” he said.
Meanwhile, traditional finance commentators continue to associate Bitcoin with the “debasement trade” — an investment thesis built around hedging against the erosion of fiat currency value.
In short, while a short-term dip toward $118,000 remains possible, broader market sentiment suggests Bitcoin’s uptrend remains firmly intact.
Download the FREE Bitcoin Mining eBook
Kickstart your mining journey with essential insights:
https://bitmernmining.com/landing-page-ebook-download/
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always intere
