Bitcoin Faces Correction Risk Despite Bull-Market Support
Bitcoin traded near $83,000 on Monday after falling 2.2% in 24 hours, as renewed uncertainty over Middle East diplomacy weakened wider market sentiment. Technical indicators suggest Bitcoin could face a short-term correction, although analysts continue to view the broader trend as bullish.
Doctor Profit said Bitcoin had reached his previous $88,000 target after rising from about $60,000 to $87,300. He expects Bitcoin to potentially retreat to $79,000, near its 50-week moving average, before resuming its advance. Bearish divergences in RSI, MACD/PPO and MFI, together with weaker ADX trend strength, support the correction case.
Ali Martinez said Bitcoin was retesting $82,000 after breaking out of a double-bottom pattern. Holding this level could provide support and open the way towards $100,000. Meanwhile, wallets holding 100 to 1,000 BTC have accumulated nearly 114,000 BTC since 15 July.
Institutional demand remains strong. US spot Bitcoin ETFs recorded $2.39 billion in net inflows last week, taking cumulative inflows to $57.55 billion. Strategy also bought 1,665 BTC at an average price of $85,681, lifting its holdings to 847,666 BTC. For traders, $82,000 and $79,000 are key support levels, while $100,000 remains a potential upside target.
Neutral
The immediate market signal is mixed, supporting a neutral rating. Bitcoin has fallen 2.2% and several momentum indicators show bearish divergences, which could encourage short-term profit-taking and a test of the $82,000 or $79,000 support zones. A break below those levels could increase selling pressure and weaken the bullish technical structure.
However, the medium- and long-term backdrop remains constructive. Bitcoin ETF inflows reached $2.39 billion in one week, cumulative inflows exceeded $57 billion, and large holders continued accumulating. Strategy’s purchase of 1,665 BTC also signals persistent institutional demand. These factors may limit downside if support holds and could provide fuel for a later move towards $100,000.
Similar market patterns have occurred when Bitcoin rallies rapidly into a resistance area while ETF demand remains strong. Prices often experience a consolidation or correction before the broader trend resumes. Traders should therefore monitor ETF flows, whale activity, and weekly support closely. Sustained trading above $82,000 would improve the chance of a renewed rally, while a decisive break below $79,000 would raise the risk of a deeper correction.