The theory that the cryptocurrency market tends to ‘pump’ on Sundays has been prevalent for a long time and has, relatively recently, received a ‘tail’ stating that the issue with such a weekend rally is that it is followed by a ‘Monday dump.’
When it comes to Bitcoin (BTC), Monday, December 16, appears particularly fertile ground for a downward correction. The world’s premier cryptocurrency has recorded multiple highs since Friday and even briefly crossed above $106,000 on December 15.
BItcoin Sunday-Monday price action in late 2024
Looking at Bitcoin’s recent price history, the truth behind the saying appears, at best, dubious.
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Through most of November, BTC’s price action was driven by a strong upward momentum that ensured that day over day – whether it be Sunday to Monday or any other part of the week – the cryptocurrency was on the rise.
The first notable demonstration of the ‘pump-dump’ dynamic came at the very end of November. Specifically, Bitcoin closed above $98,000 on Sunday, November 24, and, within 24 hours, plunged to $93,102.
The same principle – albeit less stark – could be observed on December 1 and 2 – $97,200 to $95,800 – and on December 8 and 9 – $101,236 to $97,400.
Considering the performance, it appears plausible that, on Monday, December 16, Bitcoin could retrace toward its nearest support zone just above $102,000. Such a move appears particularly likely as the cryptocurrency is, at press time, halfway between the recent high and the likely short-term bottom at $104,584.
While a plunge toward lower supports near $100,000 and $98,000 is possible, it appears unlikely, barring a major market shock both due to the historical price action and the fact that BTC’s relative strength index (RSI) is neutral at 69.53, hinting that no particularly decisive move is imminent.
What could drive Bitcoin below $100,000 this week?
One possible development that could trigger a Bitcoin move below $100,000 would be the news that Michael Saylor’s MicroStrategy (NASDAQ: MSTR) made another massive cryptocurrency purchase.
Indeed, the company has been using the weekends to purchase additional cryptocurrency and one of the biggest ‘Sunday pump-Monday dump’ events coincided with the company’s biggest BTC purchase to date, unveiled on November 25.
Another possible danger, despite the generally bullish forecasts, could arise from an observation made by Ali Martinez, a prominent cryptocurrency expert on X and one of the analysts responsible for popularizing the ‘rally-downturn’ dynamic.
Specifically, Martinez observed in a December 15 tweet that, both in 2017 and 2021, the market top was heralded by significant selling activity among long-term Bitcoin holders and wondered if late 2024 could see the reemergence of the pattern.
Featured image via Shutterstock
