Bitcoin (BTC) Price Grabs Attention by Closing Its Highest Weekly Candle Ever

A lot has happened in the crypto market over the last 24 hours. Bitcoin grabbed attention over the weekend by closing its highest weekly candle ever.

Bitcoin price surged over the weekend, closing its highest weekly candle ever. The crypto market also saw massive liquidations of over $650 million as both longs and shorts were liquidated.

Bitcoin’s sudden move upwards took out short traders, and then a quick correction took down some long positions too.

Bitcoin is still in a strong uptrend, trading above an important support zone.

While Bitcoin continues to show strength, Ethereum has been lagging behind.

Macro Shift?: US Credit Downgrade by Moody’s, Weaker Dollar Helps Bitcoin

According to a macro researcher, beyond technicals, broader market dynamics are starting to favor Bitcoin too. Last week, Moody’s downgraded U.S. government’s credit rating from AAA to AA1, citing "rising deficits" and "ballooning interest costs" to service the nation's debt.

The news sent the U.S. Dollar Index (DXY) tumbling to 100.85. A weaker dollar typically supports alternative assets like gold, which edged up 0.4% on Monday. Often, this spillover flows to Bitcoin, which many investors now view as a digital alternative to traditional safe-haven assets.

Mixed Signals: Rising Treasury Yields Create Cautious Market Tone

However, the macro backdrop is mixed. Yields on 10-year U.S. Treasuries climbed higher on Monday, reflecting a growing risk premium tied to fiscal concerns.

This combination of a softening dollar and rising yields has dampened equity and corporate bond appetite, setting a cautious, risk-off tone across markets.

Yet in this climate, Bitcoin’s unique positioning as both a risk asset and a store of value could work in its favor. The “digital gold” narrative has grown stronger in recent years, and with the dollar under pressure, Bitcoin may attract increased interest from those seeking alternatives to traditional fiat-based investments.

Bitcoin’s Next Moves: Key Support and Resistance Levels to Watch

Currently, Bitcoin is encountering resistance at the $105,000 and $106,000 levels, with more resistance anticipated between $108,000 and $109,000.

On the downside, Bitcoin has strong support at the $102,000 zone and the $96,000-$98,000 range, which previously acted as resistance and is now a crucial safety net for the bulls.