Is the correction of bitcoin really something to be alarmed about? Or is it simply a expected stage in the grand crypto cycle? In an industry where euphoria often rhymes with vertigo, every shake revives debates. After a stratospheric peak above $124,000, BTC retreats. For some, it's healthy. For others, it's a weak signal of a possible turn. One thing is for sure: this week looks electric.
In summary
Bitcoin lost more than $10,000 after reaching an all-time high.
Several traders report a market manipulation orchestrated to liquidate retail positions.
The Jackson Hole meeting could strongly influence upcoming monetary policy decisions.
Despite the drop, Coinbase's premium remains positive, indicating strong institutional interest from the U.S.
Bitcoin flirts with highs... then plummets sharply
The bullish price dynamics of bitcoin seemed unstoppable. Upon reaching $124,500, the flagship crypto shattered a new record. But the party ended soon: BTC fell more than $10,000 in a few days.
The market was caught by surprise. Several traders mention crucial areas to watch. For Daan Crypto Trades, 'the main levels to watch are 112K and 120K.'
But is this drop natural? Not for everyone. Trader CrypNuevo mentions a coordinated action:
An organized movement caused the price to drop, resulting in $1 trillion in liquidations... Meanwhile, a hand was buying everything.
However, bitcoin remains above its 21-day moving average, which may seem reassuring. But Material Indicators clarifies: 'This does not guarantee a collapse, but significantly reduces the probability of a breakout this week.'
The signals to watch: between the Fed, volumes, and manipulations
Bitcoin does not fall into a vacuum. Behind the volatility, several elements are accumulating that complicate the market reading. Here are the main catalysts to closely observe in the coming days.
The Fed joins the equation
This week, all eyes are on the Jackson Hole symposium. Fed Chairman Jerome Powell will detail his view on monetary policy. For Mosaic Asset, 'investors will scrutinize his speech and his perception of the dilemma between rising inflation and employment weakness.'
Uncertainty is at its peak: a shift towards more accommodative rates could reignite the appetite for risky assets... or the opposite.
Increasingly low volumes
Another worrying signal: the lack of volume. Trader Roman raises the alarm: 'BTC lost $10,000. The lack of volume is extremely concerning. All of this seems like distribution to me, exactly like in 2021.'
Market manipulation?
Several signs suggest non-organic action. CrypNuevo adds:
They probably 'stopped the train' to accumulate before the next increase.
A classic twist in the crypto ecosystem.
Coinbase and Binance, two distinct worlds
Interestingly, Coinbase's premium remains high. This means that American buyers continue to pay more than on Binance. Analyst Cas Abbe wonders: 'Either Saylor is buying alone, or big players are discreetly accumulating before an important event.'
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Altcoins, Bitcoin, and liquidity: heading towards a trajectory under high tension
The crypto market now seems suspended in a fragile balance. While bitcoin enters its seventh week of bullish trend, some see a historical limit. For specialist Rekt Capital, 'BTC's second bullish cycle usually ends between the fifth and seventh week.'
And then? Perhaps a temporary pullback... or a new beginning.
Five references to understand this crypto week
$124,500: last all-time high of bitcoin before its sharp drop;
$1 trillion: liquidations in 24h, according to CrypNuevo;
$114,000: main support level to watch;
7 weeks: duration of BTC's last bullish phase;
Jackson Hole: central event for the Fed's decisions this week.
Bitcoin is going through a turbulent zone, but some see it simply as a breather. The renowned trader Peter Brandt, with decades of charts behind him, even envisions a spectacular takeoff. According to him, BTC could rise to $280,000 by the end of the year, as long as post-halving cycles repeat. If this prediction is correct, the hardest part... has probably already passed.
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