Key points:
Bitcoin undergoes a retracement after reaching new all-time highs exceeding $125,000.
Sunday trading leads to BTC price fluctuations as traders monitor possible bounce points.
Institutional interest is growing as discussions around Bitcoin as a “debasement trade” intensify.
Bitcoin (BTC) saw renewed volatility as it neared the weekly close on Sunday, following a price correction from its all-time highs.
Analysis: Potential 4% BTC price decline
Data from Cointelegraph Markets Pro and TradingView indicated BTC/USD dipping below $123,000.
The pair previously set new highs above $125,000 earlier in the day, supported by derivatives trading occurring unusually on the weekend.
Commenting on the recent price behavior, prominent trader Skew cautioned that the upward movement may be “bait” for long-position traders.
“Passive shorts are compounding here,” he noted in a post on X, referring to traders attempting to short-sell at the price peaks.
“Shorts are being opened here based on the consensus that the weekend rise is bait.”
Data from CoinGlass illustrated that liquidity on exchange order books was being impacted on both sides of the price.
Crypto market participants often perceive weekend price movements as unreliable indicators due to thin market liquidity.
When assessing where the retracement might find support, trader CrypNuevo suggested a focus on the 50-period exponential moving average (EMA) on four-hour timeframes, currently just above $118,000.
“In the week ahead, a retest of the 4h50EMA is likely – it’s currently overextended, and similar price movements have shown retests historically,” he shared in an X thread.
“Following that, we should anticipate a further upward movement. Hence, I still prefer longs over shorts from the 4h50EMA.”
Notable trader and analyst Rekt Capital also looked at historical data to predict future BTC price movements. He suggested that breaking through $124,000 may take some time.
“It’s no surprise that Bitcoin has faced resistance around ~$124k during this uptrend. Last time it encountered this level, it led to a -13% drop,” he explained.
“Bitcoin must demonstrate that the $124k resistance is weakening. Any smaller retracement from here would indicate that.”
Rekt Capital noted that BTC/USD could decline by up to 4% while still maintaining the weekly upward trend.
Growing interest in Bitcoin “debasement trade”
Conversely, bullish perspectives highlighted institutional interest.
Related: JPMorgan, Citi forecast Bitcoin boom in Q4: Here are their price targets
Caleb Franzen, founder of financial research firm Cubic Analytics, remarked that the current lack of significant price pullbacks indicates strong demand.
“The current short-term price patterns, with minimal pullbacks and sharp upward moves followed by robust buying, suggest institutional activity,” part of various X updates noted read.
Commentators from mainstream finance pointed to Bitcoin’s role in the “debasement trade,” highlighting investors’ interest in hedging against the depreciation of fiat currencies.
Digital #Gold – aka #Bitcoin – mirrors its counterpart, achieving a new record high exceeding $125k – a milestone in the ongoing debasement trade as investors seek to shield themselves from currency devaluation. pic.twitter.com/KHjeet5EW8
— Holger Zschaepitz (@Schuldensuehner) October 5, 2025
Cointelegraph has reported on this trend, a term first introduced by JPMorgan analysts earlier this year.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should carry out their own research before making any decisions.
