Buying Bitcoin when it drops to key support levels

BTCUSD is showing signs of fading momentum after pushing upward to a new all-time high of $126,195. A bearish candlestick on October 7 signaled this, pulling the pair back to $123,600 and indicating temporary buyer exhaustion. 

This technical picture suggests the price will probably keep going down in the near term. The decreasing Chaikin Oscillator, which often foreshadows quote dynamics, suggests that major market players have started taking profits. The RSI's proximity to overbought territory implies that, barring a preliminary pause, the potential for further growth is limited.

The market is poised to continue its correction toward the $122,000 support by October 14, potentially testing $117,500 along the way. Once overbought conditions ease and profit-taking pressure subsides, Bitcoin is likely to establish a new equilibrium and resume its uptrend. Nevertheless, the chances of achieving fresh highs within this forecast period are low, as the crypto needs time to reset. A decisive break above the $126,200 resistance would require a substantial surge in buying volume, which seems to be diminished in the present climate.

Despite this technical outlook, the fundamental backdrop still supports medium-term optimism for the token. The prolonged US government shutdown, coupled with political uncertainty in Japan and France, as well as a weakening greenback, is fueling demand for alternative assets. However, these supportive factors have already been reflected in the current price, a conclusion supported by record inflows into Bitcoin ETFs and elevated open interest. Such periods of market euphoria often precede a phase of temporary consolidation.

Here's a trading strategy to consider:

Buy BTCUSD when it corrects within the $122,000–$117,500 range. Take profit: $129,000. Stop loss: $115,500.

The forecast is relevant from October 7 till October 14, 2025.