Important Information:
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After achieving unprecedented levels, surpassing $125,000, Bitcoin is experiencing a downward correction.
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Cryptocurrency trading on Sundays is creating price swings for BTC as traders look for potential recovery zones.
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The focus is on institutional investors as discussions surrounding Bitcoin as a “hedge against currency devaluation” intensify.
Bitcoin (BTC) saw fluctuating prices near the week’s end, following a price pullback from its record peak.
Possible Scenario: Bitcoin Price Could Dip by 4%
Data insights from Cointelegraph Markets Pro and TradingView indicated that the BTC/USD value receded below $123,000.
Earlier in the day, the currency reached unprecedented highs, exceeding $125,000, driven by activity in the derivatives markets during unusual weekend trading.
Regarding the recent price movement, experienced trader Skew suggested that the upward surge might be a “trap” for those holding long positions.
“Short sellers are accumulating here,” he noted on X, referring to traders attempting to profit from price declines at the peak.
“Short positions are being opened, based on the expectation that the weekend increase is a setup.”
Data provided by CoinGlass revealed the presence of liquidity being utilized on both sides of the price in exchange order books.
Crypto market observers tend to regard weekend price actions, whether upward or downward, with caution, seeing them as potentially unreliable indicators of future price direction because of reduced trading volumes.
Trader CrypNuevo, considering potential bottom levels, pointed to the 50-period exponential moving average (EMA) on four-hour charts, currently situated just above $118,000.
“Looking ahead to the week, a retest of the 4h50EMA is possible, as it’s overextended, and we’ve seen retests in similar historical Price Action,” he explained in an X post.
“Following that, we should anticipate a new upward movement. Therefore, I continue to favor long positions over short positions from the 4h50EMA.”
Well-known trader and analyst Rekt Capital also employed historical comparisons to predict Bitcoin’s future price trajectory. He suggested that breaking through the $124,000 level might take time.
“It shouldn’t come as a surprise that Bitcoin faced resistance around $124k during its initial attempt in this uptrend. After all, the previous rejection at $124k was followed by a -13% pullback,” he explained.
“Bitcoin needs to demonstrate that this $124k resistance level is weakening. Any shallower dip or pullback from here would achieve that.”
Rekt Capital added that a 4% drop in BTC/USD would still allow it to maintain its weekly upward trend.
Bitcoin Gains Ground as a “Debasement Trade”
Meanwhile, positive outlooks emphasized the rising interest from institutional investors.
Related: JPMorgan and Citi Predict Strong Q4 for Bitcoin: Here Are Their Price Forecasts
Caleb Franzen, the creator of Cubic Analytics, a financial research platform, noted that the limited pullbacks in Bitcoin’s price indicated strong demand.
“Observing short-term price action like this, with minimal pullbacks and significant upward spikes followed by consistent buying, suggests institutional involvement,” he mentioned in various updates on X that day, as one tweet noted.
Financial commentators are highlighting Bitcoin’s role in the “debasement trade,” referring to investors’ efforts to protect themselves against the diminishing value of traditional currencies.
Digital #Gold – aka #Bitcoin – is following its analogue counterpart, hitting a new record high >$125k – a milestone in the ongoing debasement trade, as investors seek protection from currency devaluation. pic.twitter.com/KHjeet5EW8
— Holger Zschaepitz (@Schuldensuehner) October 5, 2025
Cointelegraph previously covered this trend, a term initially used by JPMorgan analysts at the start of the year.
This content is for informational purposes only and does not constitute financial advice. Trading and investing involve risk, and it is essential to conduct thorough research before making any decisions.