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After reviewing recent price action of the Bitcoin in the weekly chart, it appears that despite an attempt to test a fresh high at $123229 on the first day of the “Crypto Week” amid buoyed optimism over growing institutional adoption this week as the US House of Representatives will debate several landmark crypto bills during “Crypto week”, including the Genius Act, Clarity Act, and the Anti-CBDC Surveillance State Act.
If passed, these measures could establish comprehensive regulatory frameworks to govern stablecoins, crypto asset custody, and the broader digital financial ecosystem, as U.S. President Donald Trump has already expressed his desire to include crypto in central reserves.
Undoubtedly, such developments pushed Bitcoin to record highs after a breakout above the significant resistance at $108,212 since mid-December 2024, after testing a low at $7,453 in the second week of April 2025.
However, this week’s price action suggests the correction phase could start shortly as Bitcoin has finally tested the height target, set by the formation of "Cup & Handle," where the depth of the Cup sets the height of the target.
I anticipate that this week’s weekly candle looks evident enough for the advent of a correction phase this week itself as bullish sentiments have generated a plethora of doubts due to surging ‘Ifs & Buts’ as the technical formations are in favor of the bears as any change in sentiments could bring a big jolt for this house of cards as the Bitcoin was on a tear over the past week, fueled by strong ETF inflows and increasing hopes for more crypto-friendly regulations in the United States.
Finally, I conclude that if Bitcoin doesn’t recover above the immediate resistance at $118850, a breakdown below the immediate support at $115343 during this week, the next weekly candle will confirm the further direction of the Bitcoin price. A breakdown below the second support at $108212 is likely to generate a fresh selling spree next week.
In case of such exhaustion, first support will be seen at the 9 DMA at $108380, second support will be at the 20 DMA at $98240, and the third support level will be at the 50 DMA at $88126, from where some bounce back could be seen.
Disclaimer: Readers are advised to take any position in Bitcoin at their own risk, as this analysis is based only on observations.