Bitcoin’s Wild Ride: Daily Gains Erased – Is This a Bearish Omen for the Week Ahead?

Bitcoin giveth, and Bitcoin taketh away. The crypto king's latest price action saw daily gains evaporate faster than a meme coin's utility – leaving traders wondering if this signals trouble as markets open for the week.

Pump and dump or healthy correction? The charts don't lie, but your broker's 'technical analysis' might. After clawing back ground in early trading, BTC's sudden retreat has liquidated over-leveraged longs with the precision of a Swiss watchmaker.

Meanwhile, traditional finance pundits – who still think blockchain is something you use to secure your bicycle – are predictably spinning this as proof of crypto's instability. Never mind that fiat currencies lose more value before your morning coffee finishes brewing.

Here's what matters: Volatility isn't a bug, it's a feature. And for those with diamond hands, these swings are just another buying opportunity disguised as chaos.

While the Sunday rally initially fueled optimism, it failed to hold the key threshold. Though market analysts have captured the excitement, with some traders anticipating a breakout toward new all-time highs, potentially reaching $110,000–$112,000 this week if the resistance was reclaimed. 

However, as the enthusiasm was short-lived, it drove a decent amount of selling pressure and further it could pull Bitcoin price back to around $105K by the end of the session. This roundtrip, where gains are quickly erased, often signals indecision in the market and can foreshadow bearish trends, particularly when coupled with other technical indicators.

Analysts point this trajectory to several concerning signals. The Relative Strength Index (RSI) on daily charts has shown bearish divergence, where price increases are not matched by corresponding momentum, a pattern that preceded pullbacks in December 2024 and January 2025. 

Additionally, on-chain data from leading crypto exchanges indicates increased selling activity, with spot market Cumulative Volume Delta (CVD) showing limit and taker selling into the price surge. Moreover, market analysts also note that open interest in perpetual futures has also risen, suggesting over-leveraged positions which would likely amplify volatility. 

Despite Bitcoin’s long-term bullish outlook, short-term risks persist. The $107,000–$108,000 range remains a critical battleground, with failure to hold above this level potentially exposing BTC to a drop toward the $100,000–$104,000 support range. 

Also read: Ripple-partner SBI Moves $703 Million in XRP, What’s Happening?