Bitcoin held above $66,000 this week as broader tech stocks sold off, with market attention shifting to Washington’s updated CLARITY Act draft. The legislation, unveiled by Senate Republicans, would bar senior U.S. officials, including President Donald Trump, from sponsoring crypto for compensation until 2029. While Bitcoin steadied, spot Bitcoin ETFs saw mixed flows—recording net inflows earlier in the week but ending with net outflows as Ethereum ETFs attracted fresh capital. Analyst Ali Martinez identified $70,920 as a key resistance level for Bitcoin, noting that the asset remains under pressure despite holding its ground against market turbulence.

Meme Coins Diverge on Analyst Outlook

The meme coin sector showed sharp divergence in analyst sentiment. Kevin, an analyst, warned that many leading meme coins are “hitting the wall” after drawdowns exceeding 95% from their all-time highs. He singled out Shiba Inu, Bonk, and Floki as unlikely to revisit prior peaks, labeling them effectively worthless for new investors. Conversely, he viewed Dogecoin more optimistically due to its constructive chart structure and staying power through multiple cycles, though he cautioned it remains highly speculative and has underperformed Bitcoin for six consecutive years. Pepe was seen as likely to survive the downturn despite an uncertain outlook.

Altcoins Show Technical Strength

Technical setups emerged for three altcoins: Hyperliquid, Uniswap, and Monero. Hyperliquid bounced off a key demand zone between $56 and $58, with resistance clustered near $62.31–$62.56. Uniswap completed a cup-and-handle breakout above $3.8, targeting a range of $4.80–$5. Monero coiled near $358 in a tight Bollinger Band squeeze, with analysts suggesting a daily close above $360 could target $400–$420. These assets were framed as having cleaner technical setups than Bitcoin or XRP at current levels.

Market Volatility and Whale Activity

Market volatility remained high, with 83,203 traders liquidated for $301 million in a 24-hour period. Trader Crypto Kaleo predicted one final leg lower before a bear-market bottom, doubting Bitcoin would reclaim $100,000 or set new highs before 2027. In contrast, trader KillaXBT argued the current cycle has accelerated compared to historical patterns. Meanwhile, Shiba Inu climbed back to the 31st-largest cryptocurrency after briefly falling to 33rd. This move coincided with Coinbase shifting 1.16 trillion SHIB across internal wallets, which analysts described as routine custody management rather than a selling signal. Daily volume for Shiba Inu cooled from around $100 million to $50–$70 million, while whale wallet counts continued to rise—a pattern often preceding accumulation phases.

What the Numbers Show

The divergence between Bitcoin’s stability and the severe drawdowns in meme coins highlights a rotation toward established assets amid regulatory uncertainty. The CLARITY Act’s progress may be reinforcing investor caution, favoring assets with clearer technical setups like Hyperliquid and Uniswap over speculative tokens. The liquidation of $301 million in positions underscores the risks of leverage in a volatile environment, even as major assets like Bitcoin hold key support levels.

Crypto influencer and trader Carl Runefelt, known as "The Moon," has sold two Ferraris worth a combined $2.5 million to increase his exposure to Bitcoin (CRYPTO: BTC). In a podcast on Friday, Runefelt argued that Bitcoin is approaching one of its most historically significant support zones, presenting a rare accumulation opportunity for investors willing to deploy capital at these levels.

Runefelt pointed to the 200-week moving average, a long-term technical indicator that reflects Bitcoin’s average price over approximately four years and broadly aligns with the cryptocurrency’s halving cycle. He stated that this indicator has previously coincided with major market bottoms, suggesting that the current decline offers a strategic entry point rather than a signal of further distress.

Strategic Entry and Leverage Risks

Rather than entering his entire position at one price, Runefelt said he places several limit orders throughout the support zone to build an average entry. He cautioned against using significant leverage around long-term technical levels because Bitcoin can briefly fall below widely watched support before reversing. Sharp declines can trigger stop-loss orders and liquidations positioned beneath the moving average, wiping out leveraged traders immediately before a potential rebound.

Runefelt claimed he currently has more than $2.5 million in Bitcoin positions open on MEXC, in addition to another profitable position on Bybit. This allocation underscores his conviction in the asset’s near-term recovery potential despite broader market volatility.

Historical Precedents

Runefelt cited several previous occasions when Bitcoin traded near or below its 200-week moving average before beginning major rallies:

"Historically, each of these touches has marked a bottom right before the next parabolic rally," he said. Runefelt also pointed to the 2022 bear market, when Bitcoin remained below the long-term average for several months before recovering in the subsequent cycle, reinforcing his view that patience and disciplined entry strategies are critical during such periods.