Bitcoin Price: Unveiling 5 Crucial Factors Behind the Recent Dip

The cryptocurrency market recently witnessed a significant shift. Bitcoin (BTC) experienced a sharp sell-off. This unexpected **BTC dip** left many investors and traders questioning the market’s immediate direction. What caused this sudden decline? Furthermore, what implications does it hold for the coming days? This article delves into five crucial factors shaping the current **Bitcoin price** landscape, offering vital insights for every crypto enthusiast.

Understanding the Recent Bitcoin Price Action

Bitcoin’s journey saw a fresh sell-off as the new week began. Traders are now split on where BTC will head next. The **Bitcoin price** has dipped over $10,000 since its latest all-time high, reached just days ago. This recent movement draws comparisons to the 2021 market top. Data from Crypto News Insights Markets Pro and TradingView confirms this swift sell-off. It disturbed a calm weekly close for BTC/USD on Monday. Just after reaching above $124,500, the pair shed 2% in hours. This brought its total drawdown from the peak to over $10,000.

Commenting on the current market structure, many traders quickly called for new local lows. For instance, Crypto Tony noted a ‘rising wedge playing out as expected.’ Material Indicators, a trading platform, even dismissed Bitcoin holding its 21-day simple moving average (SMA). They flagged a ‘pretty solid’ down signal on one of their proprietary tools. “That doesn’t guarantee a nuke, but it drastically reduces the probability of a $BTC breakout this week,” they wrote on X. Additionally, popular trader Daan Crypto Trades highlighted $112,000 as a key level to watch on the downside. He also mentioned a break of $120,000 for any reversal. “These early week moves do have the tendency to retrace but let’s see how the US Market does today,” he shared with X followers. Some experts express long-term concerns. Trader Roman, for example, stressed that low volume failed to support the recent highs. “Now $BTC is down $10,000 from prior highs. The lack of volume has been extremely concerning for the past few months,” he concluded. “To me it’s distribution. Everything still lining up like 2021.” Roman referenced Bitcoin’s last bull market. That cycle ended in late 2021 after a blow-off top at $69,000. This level remained resistance for years, triggering a 77% bear market drawdown.

Deep Dive into Crypto Market Analysis: Manipulation Theories

While market manipulation is rarely seen as positive, Bitcoin may be experiencing undue sell-side pressure. This pressure might not reflect true demand. This is the conclusion from popular trader CrypNuevo. In a recent X thread, he argued that the snap **BTC dip** was far from organic. “Bitcoin made a new ATH, but then a manipulated organized move dumped price causing $1B in liquidations in 24h,” he summarized. “At the same time that retail was getting stopped out & liquidated… a hand bought all those liquidations.”

CrypNuevo suggests a large-volume buyer on crypto exchange HTX is simply trying to buy at lower levels. They expect the uptrend to continue. “It’s probable that they ‘stopped the train’ to get a few more buys before it goes again,” he continued. “So it’s possible that we see some consolidation, maybe choppy PA, for some days before reclaiming again that $120k level.” He believes that once **Bitcoin price** sustains above $120,000, a significant upward move should follow. Exchange order-book data from CoinGlass supports this. It shows how price sliced through bid liquidity, with $114,000 being a key area of interest.

Federal Reserve Jackson Hole Symposium and Macro Impact

This week, the Federal Reserve’s annual policy symposium in Jackson Hole, Wyoming, is a major event. It is on every trader’s calendar. Chair Jerome Powell will speak on Friday. This promises to be a risky climax for market uncertainty over future policy. Specifically, interest rates are a primary concern. “Investor attention will be fixated on Federal Reserve Chair Jerome Powell’s Jackson Hole speech,” Mosaic Asset confirmed in their latest ‘The Market Mosaic’ edition. They will also focus on “how the Fed is viewing the balance of risks between recent weak labor market data and rising inflation.”

The Fed faces a difficult choice. They are caught between rising inflation and weakening labor-market data. Neither raising nor lowering rates seems an attractive option. Analyzing current employment trends, The Kobeissi Letter warned of a potential ‘generational jobs crisis.’ “Now, the youth underemployment rate has climbed by ~5 percentage points over the last 2 years,” they observed. “This is nearly in line with the peak during the 2001 recession and the early stages of the 2008 Financial Crisis.” This signals a potential further weakening of the US labor market. Young workers are often the first to feel economic impacts. Simultaneously, Powell faces intense pressure from Washington, particularly from President Donald Trump, to cut rates significantly. Trump has repeatedly criticized Powell for acting ‘too late.’ Powell’s successor is also due to be unveiled shortly. Meanwhile, risk-asset volatility may increase amid ongoing negotiations to end the Russia-Ukraine conflict. Kobeissi described Monday’s upcoming meeting between Trump and Ukrainian President Volodymyr Zelenskyy as ‘crucial.’ Markets are already ‘pricing in’ a peace settlement.

The Bitcoin Uptrend: Is Price Discovery Ending?

Despite multiple short-term corrections, Bitcoin has enjoyed six weeks of solid uptrend. However, as week seven begins, popular trader Rekt Capital offers a warning. Bitcoin bull market uptrend phases often reverse after five to seven weeks. “Historically, Bitcoin Price Discovery Uptrend 1 tends to end between Week 6 & 8 of its uptrend,” he explained. “Whereas in Price Discovery Uptrend 2, Bitcoin tends to end its uptrend between Week 5 & 7.” He noted, “Week 7 of Price Discovery Uptrend 2 begins tomorrow.”

An accompanying chart illustrates the various up and down phases of the current bull market. It measures from Bitcoin’s 2024 block subsidy halving. The chart suggests a near-term target of just under $160,000. Extending the latest uptrend into an eighth week would place it in the top segment of history. This would echo the 2017 bull market. Bitcoin’s first major correction of 2025 followed the end of the first uptrend. It saw a 30% drawdown and local lows just under $75,000. This historical context provides valuable perspective for **crypto market analysis**.

Coinbase Premium: A Curious Divergence

Despite the latest price drawdown, a popular US demand metric suggests market momentum remains intact. The **Coinbase Premium** measures the difference in BTC prices between the Coinbase BTC/USD and Binance BTC/USDT pairs. This week, it is in positive territory. A positive premium implies that Coinbase investor demand creates a price gap with Binance, the largest global exchange. This is an encouraging sign for US demand trajectory. The last time the premium dipped below neutral into the red was on August 12. BTC/USD made a fresh all-time high the day after. While price failed to hold, the premium has stayed buoyant. “After few days of negative premium, the Coinbase Premium is showing strength again,” CryptoQuant summarized in a recent blog post. “Is this the start of a new leg?”

Considering this curious divergence between price and the premium, popular trader Cas Abbe described the situation as “strange.” “Coinbase Bitcoin Premium is at its highest level in a month, and BTC is going down. Now this could mean 2 things,” he suggested to X followers. “Either the buyer is Saylor only, who has been twapping for days. Or, some big entities are accumulating in silence before a big event. Maybe someone knows about Russia-Ukraine peace deal.” Abbe referred to Michael Saylor, CEO of MicroStrategy. His firm has been adding BTC to its corporate treasury almost weekly throughout 2025. ‘TWAP,’ or time-weighted average price, is an investment method. A large order is filled in multiple small batches at regular intervals. This helps minimize market slippage. This ongoing activity continues to fuel the ongoing **crypto market analysis**.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.