Bitcoin News Today: Bitcoin Faces Correction Risks After 7-Week Rally Amid Institutional Moves

Bitcoin's extended uptrend, now entering its seventh consecutive week in 2025, is showing early signs of correction risk amid shifting macroeconomic sentiment and institutional activity. The cryptocurrency, which had climbed toward a record high of $124,000 before retreating sharply to levels below $117,000, has seen significant volatility, including a key support level test around $116,300. This movement triggered over $800 million in long-position liquidations and has raised concerns about the sustainability of the ongoing rally [1].

The recent price fluctuations are attributed to a combination of factors, including remarks from the US Treasury on the potential establishment of a Bitcoin reserve and broader macroeconomic uncertainty. The Treasury has indicated that the reserve, if implemented, would be built using confiscated Bitcoin and maintained on a budget-neutral basis. Secretary Scott Bessent emphasized that there are currently no plans for aggressive accumulation, yet the mere discussion has influenced market sentiment and triggered sharp corrections [1].

Institutional participation has also played a role in shaping the market environment. A notable example is the Norwegian sovereign wealth fund’s decision to increase its Bitcoin holdings by 83%, signaling growing institutional confidence in the asset as a long-term strategic reserve. This move has been interpreted as a sign of increased institutional adoption, reinforcing the potential for continued bullish momentum [1]. However, some analysts remain cautious, arguing that recent weakness in price action challenges optimistic forecasts, such as the $200,000 price target [2].

Market observers highlight that Bitcoin’s current price consolidation between $114,807 and $121,187 suggests a technical repositioning phase. A successful breakout above key resistance levels, particularly at $123,327 and $129,707, could reignite the uptrend and lead to a test of $129,707. Conversely, failure to maintain upward momentum could result in renewed downward pressure. Analysts remain divided on the potential depth of a correction, with some forecasting a possible 20–25% pullback [2].

Despite the near-term volatility, long-term holders remain confident. A significant portion of Bitcoin’s supply, roughly 17%, has remained untouched for over a decade, suggesting strong conviction in the asset’s long-term value. Historical patterns also indicate that corrections are a typical feature of extended uptrends, and market participants should brace for potential volatility as part of the broader cycle [1].

In summary, while Bitcoin remains in a technical uptrend, the recent pullback and institutional activity have intensified discussions around correction risks. Investors are advised to monitor key price levels and on-chain activity to gauge whether the consolidation phase will lead to renewed bullish momentum or a more significant correction. Until macroeconomic or regulatory developments provide clearer direction, market participants should remain cautious and prepared for further fluctuations [2].

Sources:

[1] AInvest (https://www.ainvest.com/news/bitcoin-news-today-norway-sovereign-wealth-fund-boosts-bitcoin-holdings-83-2508/)

[2] Bitget (https://www.bitget.com/news/detail/12560604916242)