Analysts remain optimistic despite weekend market volatility and U.S. tariff shock
Bitcoin could be poised for another short-term correction before reclaiming its all-time high near $125,000, according to veteran trader Peter Brandt, who warned that the market may need to shake out weak positions before resuming its broader uptrend.
Brandt said a “huge shakeout” could occur within the week, potentially pushing prices lower before a renewed rally. “Either we’ll see a quick correction followed by a new ATH, or a violation of the parabola — which in the past has led to a 75% drop,” he noted. “I don’t think we’ll see 80% declines anymore, but perhaps a pullback to $50–60K to test support.”
Traders eye recovery after $19B crypto liquidation
The crypto market tumbled on Friday following U.S. President Donald Trump’s announcement of a 100% tariff on Chinese goods, triggering over $19 billion in liquidations. Bitcoin fell from $121,000 to $102,000, before rebounding to around $112,000.
Charles Edwards, founder of Capriole Investments, cautioned traders to manage risk: “This weekend was a reminder that even leverage above 1.5x is dangerous,” he said. He described the recent volatility as temporary, adding that his medium-term outlook remains “up.”
Macro signals suggest bullish months ahead
Despite the correction, several analysts expect fresh inflows into digital assets amid shifting macroeconomic conditions.
BitMEX co-founder Arthur Hayes posted that the end of U.S. quantitative tightening could signal a buying opportunity, saying: “Back up the truck and buy everything.”
Quantitative easing historically supports crypto markets by lowering interest rates and encouraging liquidity.
Swyftx lead analyst Pav Hundal said, “The fundamental economic data is the big story for Bitcoin right now.” He noted that falling oil prices, softening demand, and rising unemployment may lead the Federal Reserve to cut rates soon — a “goldilocks zone for Bitcoin.”
Macro strategist Lyn Alden echoed the sentiment, saying the next quarter looks favorable for BTC performance as liquidity conditions improve globally.
“Short-term volatility may persist, but the structural trend remains bullish,” Alden said.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.