The sudden drop we witnessed last Thursday coincided with the escalating public feud between Elon Musk and U.S. President Donald Trump, a dispute that had no direct connection to the cryptocurrency market, but quickly interacted with it. Analysts believe that the decline was driven by a general tension in investor sentiment and partial liquidations in ETF funds, alongside a wave of profit-taking after recording historic price peaks.
However, the picture improved on Friday, driven by the U.S. jobs report for May (NFP), which showed stronger-than-expected data at a time when the market was concerned about a weak labor market. Recent statements from Donald Trump calling for a full percentage point cut in interest rates also supported the move towards alternative assets as a hedge, with Bitcoin at the forefront.
Economic data is expected to continue to have a strong impact during the upcoming week, especially the anticipated inflation figures on Wednesday. If they come in below expectations, we may see new calls for monetary easing, which in turn would benefit digital assets.
Technical outlook: Is the next correction an opportunity or the beginning of a collapse?
From a technical analysis perspective, Bitcoin has been moving within a downward channel since it recorded its all-time high on May 22. The drop on Thursday was a reaction to the price bouncing off the upper limit of the channel, while Friday's bounce originated from the lower limit.
As the weekend begins, the price has returned to test the upper limit of the channel again, which warns of a possible new decline in the short term. However, as long as the level of $100,000 is maintained as psychological and technical support, every drop is considered a good buying opportunity for medium and long-term investors.
On the upside, breaking the level of $106,000 may signal an exit from the downward channel, pushing the price towards levels of $110,000 and $112,000 — which could return Bitcoin to a new upward trend.
