From August 9th to 17th, the price of Bitcoin (BTC) suffered a significant setback, dropping by 18%. This sudden decline touched a critical support level at $25,000, but investors who bought the dip were very active and pushed BTC back up to the current $26,000.

For the Bitcoin price to further recover, investors need to watch if it can stabilize around the low point of $25,800 reached on Monday. Typically, assets tend to sweep key weekly levels before triggering volatility, such as the weekly opening price, Monday's low, high points, quarterly low, high points, etc. Similarly, breaking above $25,800 will be a key signal for traders to open long positions.

If BTC rebounds above $26,430, it will indicate that a bullish trend is underway. Traders can then set profit targets, including the midpoint of the 18% drop at $7,418 and the recently broken trendline around $29,000.

In the event of intense volatility, the Bitcoin price may retest the $30,000 level but is unlikely to sustain in those regions.

BTC/USDT 4-hour chart, Source: TradingView.

While the bullish outlook makes logical sense, investors need to exercise caution regarding macroeconomic policies expected this week. If risk assets are sold off, it could trigger a rapid downward movement in the Bitcoin price. If BTC falls below $24,586 within the four-hour timeframe, this development may invalidate the recovery theory.