Bitcoin saw a classic weekend pump-and-dump, with price now sitting at a critical support level. Despite the drop, the market structure remains bullish and poised for another breakout.
Bitcoin (BTC) opened the week with a sharp retracement after an unsustainable Sunday rally pushed prices higher. The impulsive sell-off into Monday brought the asset back to a crucial support zone, yet the broader picture remains optimistic.
Bitcoin continues to trade within a well-defined bullish channel, and the current correction is retesting key levels that could act as a launchpad for the next leg up. If this zone holds, there’s a strong case for Bitcoin pushing to new all-time highs in the coming days.
Key technical points
- Bitcoin is still respecting its bullish ascending channel, holding higher highs and higher lows.
- Price is testing a support confluence zone at $102,790, the 0.618 Fibonacci, the VWAP, and the channel low.
- Bullish structure remains intact, despite the short-term volatility after the weekend spike.
The corrective move seen over the past 24 hours is characteristic of weekend-driven volatility, where thin Sunday volume can lead to exaggerated price swings. While the pullback may seem dramatic on lower timeframes, it has delivered Bitcoin to a significant technical zone with multiple levels of confluence. This makes the current area not just a support level, but a potential accumulation zone.
Importantly, the broader market structure remains bullish. Bitcoin continues to form higher highs and higher lows, and the ascending trading channel has held firm through the recent retracement. Holding this support region could establish the foundation for the next bullish rotation. Technically, it’s a high-probability zone for long setups, provided price consolidates and begins forming a base on intraday charts.
From here, Bitcoin must stabilize above this support confluence and establish a bottoming formation, a typical precursor to renewed momentum. If successful, this would open the door to a move toward the channel’s upper boundary. That upper trendline, which hasn’t been tested during the current move, remains a likely price target if bullish momentum returns.
What to expect in the coming price action
Bitcoin continues to hold a bullish narrative despite recent weekend volatility. If current support levels remain intact, price is likely to rotate higher and make another attempt at all-time highs this week. A brief period of consolidation at these levels could represent the calm before the next breakout.
