When the US Congress launches “Crypto Week,” Bitcoin enters a pivotal moment, with lawmakers discussing and voting on groundbreaking cryptocurrency laws. The decisions made this week can shape the regulatory framework for US digital assets for years to come, and investors are looking closely.
Meanwhile, Bitcoin recently sets a new all-time high of $123,200, dating back to key demand near the $116,000-$118,000 zone, surpassing key support levels. Despite the pullback, the broader trend remains bullish, the price structure remains intact and the support level is protected by the buyer.
However, fresh data from encryption reveals signs of investors surrender after Tuesday’s sharp revision. On-chain metrics show that sales were recorded significantly when Bitcoin fell, with some holders likely closing their positions in panic. This wave of sales added short-term pressure, but washed away potentially weak hands and set stages for a more stable recovery.
Panic sales surface when investors lose 50k bitcoin
Top analyst Axel Adler shares important data revealing that nearly 50,000 BTC has been sold at loss in the last 24 hours. This sharp wave of sales lies in a follow-up from Bitcoin’s all-time high of $123,200, reflecting clear signs of panic in the market. The data suggests that many investors have finished their position below the entry point. This is a classic sign of surrender between weak hands.
While this may seem surprising, such events often precede the continuation of bullish price action, particularly in a strong upward trend. By shaking uncertain holders, the market could be located for healthier, more sustainable growth driven by long-term convictions rather than speculative noise.
However, broader uncertainty remains. On Tuesday, all three major crypto bills were rejected by the US Congress during the opening of Crypto Week, raising concerns over a lack of clarity in digital assets regulation. This unexpected legislative setback could encourage short-term hesitations from institutional investors awaiting clearer engagement rules.
Despite these headwinds, the basics and chain metrics of Bitcoin continue to be strong. Exchange reserves are low, long-term holder supply remains stable, and network activity continues to grow. Furthermore, recent increases in retail demand and Altcoin participation point to potential expansion phases not only in Bitcoin, but in the broader crypto market.
BTC is strongly retained after sharp correction
The 8-hour Bitcoin chart shows that BTC is well held after a decline in volatility from an all-time high of $123,200. The price was rapidly raised to the $115,700 level, but found immediate support, printed bullish wicks, and is now trading around $118,800. Despite the corrections, the structure remains bullish, with higher lows and higher highs still intact.
Importantly, SMAs (simple moving averages) for the 50, 100, and 200 periods are aligned upside down, confirming a powerful uptrend. BTC is well above the main support level of $109,300, which previously was a major resistance zone. This is currently serving as an important area of demand. If the Bulls keep up the momentum and regain the $120,000 zone, they can have a greatest retest ever.
Volume during the drop has skyrocketed significantly, suggesting either panic sales or a well-executed shakeout of weak hands. However, a rapid recovery shows strong underlying demand and continued convictions among long-term holders.
Dall-E special images, TradingView chart
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