Bitcoin’s Weekly Drawdown Narrows to 4.7% – Is the Market Gearing Up for a Major Move?
Bitcoin volatility hits a lull as weekly drawdown tightens to just 4.7%—the calm before a storm?
Subheading: Sleeping Giant or Stalled Momentum?
The king of crypto barely flinched last week, with sell-offs shrinking to levels not seen since the last consolidation before its 2024 bull run. Retail traders are split: some see stability, others smell stagnation. Meanwhile, Wall Street 'experts' are still debating whether Bitcoin is a currency, an asset, or a threat to their bonus pools.
Subheading: Liquidity Squeeze or Smart Money Accumulation?
Thin order books and muted derivatives activity suggest either disinterest or stealth positioning. With institutional inflows pausing and leverage ratios flat, the market’s playing poker—everyone’s waiting for someone else to blink first.
Closing Hook: When Bitcoin gets this quiet, it’s either reloading or out of ammo. And given its track record, which would you bet on? (Spoiler: The 'stablecoin' brigade won’t like the answer.)
Bitcoin Consolidates As Market Maturity Reinforces Bullish Outlook
Bitcoin’s price action remains in focus after a sharp drop to $98,000 triggered market-wide concern. However, BTC quickly rebounded, climbing above the $105,000 level and stabilizing in a narrow consolidation range. While speculation around a potential double top continues to circulate, on-chain metrics suggest no structural breakdown. Market sentiment has leaned slightly bearish, but the underlying trend remains intact.
Top analyst Axel Adler highlighted a critical pattern: since the bull market began in November 2022, bitcoin has only faced two significant corrections exceeding 30%—in August 2024 and April 2025. Both times, the asset swiftly recovered and moved on to set new highs. Outside of these episodes, price pullbacks have remained within the typical 10–20% range, functioning as healthy shake-outs rather than breakdowns. This consistency reflects a maturing market with stronger hands and more disciplined demand.
As of now, the weekly SMA drawdown sits around -7%, and the current drawdown is a modest -4.7%, reinforcing the idea of calm consolidation within the $100K to $106K range. The pattern of DEEP correction followed by accumulation and then a renewed push higher has defined this cycle. If this structure holds, Bitcoin could be gearing up for another leg toward new all-time highs. Confidence continues to grow that BTC’s path remains upward, driven by macro adoption, decreasing exchange liquidity, and the strengthening belief in Bitcoin as a long-term store of value.
BTC Approaches Key Resistance After Sharp Recovery
Bitcoin is currently trading at $106,622 on the 12-hour chart after rebounding strongly from the recent low of $98,000. The recovery, sparked by geopolitical de-escalation in the Middle East, pushed BTC above the critical $103,600 support level and into a renewed bullish structure. Price has now crossed above the 50 and 100-period moving averages ($105,410 and $105,309), a short-term positive signal suggesting growing momentum.
Volume also surged during the bounce, confirming strong buyer interest near the $100K mark. BTC now faces a decisive resistance zone around $109,300—the previous local top and a level where sellers have historically stepped in. If bulls manage to push through this zone with volume, it WOULD likely trigger a breakout toward new highs.
However, rejection at this level could send Bitcoin back to retest the $103,600 support. The current consolidation range between $103K and $109K has served as a high-activity zone since early May, and a breakout in either direction would provide clearer market direction.
Featured image from Dall-E, chart from TradingView
