The theory that the cryptocurrency market tends to “pump up” on Sundays has been widespread for a long time and more recently gained a “tail” claiming that the problem with such a weekend rally is that it is followed by a “Monday dump.” .’
As for Bitcoin (BTC), Monday, December 16th appears to be particularly fertile ground for a downward correction. The world’s major cryptocurrency has recorded several highs since Friday and even briefly topped $106,000 on December 15.
Bitcoin price movement from Sunday to Monday at the end of 2024
Looking at the recent price history of Bitcoin, the truth of this statement seems dubious at best.
For most of November, BTC’s price action was driven by strong upward momentum, which ensured that day after day – whether from Sunday to Monday or any other part of the week – the cryptocurrency rose.
The first noticeable demonstration of pump-dump dynamics occurred at the very end of November. Specifically, on Sunday, November 24, Bitcoin closed above $98,000 and fell to $93,102 within 24 hours.
The same pattern – although less dramatic – could be seen on December 1 and 2 – from $97,200 to $95,800 – and on December 8 and 9 – from $101,236 to $97,400.
Given the momentum, it seems plausible that Bitcoin could return to its immediate support zone just above $102,000 on Monday, December 16th. Such a move seems especially likely as the cryptocurrency is midway between its recent high and a likely near-term bottom at $104,584 at press time.
While a fall to lower support levels around $100,000 and $98,000 is possible, it appears unlikely short of a major market shock due to both historical price action and the fact that the BTC Relative Strength Index (RSI) is neutral at 69.53, hinting that nothing particularly decisive will happen. relocation is inevitable.
What could cause Bitcoin to fall below $100,000 this week?
One possible event that could trigger Bitcoin to fall below $100,000 could be news that Michael Saylor’s MicroStrategy (NASDAQ: MSTR) has made another large purchase of the cryptocurrency.
Indeed, the company used the weekend to buy additional cryptocurrency, and one of the biggest “Sunday-Monday pump” events coincided with its largest BTC purchase to date, announced on November 25th.
Another possible danger, despite the generally bullish outlook, could arise from the observation of Ali Martinez, a renowned cryptocurrency expert on X and one of the analysts responsible for popularizing the rally-bust dynamic.
Specifically, Martinez noted in a Dec. 15 tweet that both the 2017 and 2021 market tops were marked by significant selling activity among long-term Bitcoin holders, and wondered if the end of 2024 could see a re-emergence of this pattern.
Featured image via Shutterstock
