Bitcoin experienced a volatile period last week, marked by a significant drop and subsequent retests of key price levels. Following a substantial decline last Sunday night, where the price fell to $111,800, Bitcoin attempted to recover. It bounced back to retest the $113,800 resistance level and the 21-day Exponential Moving Average (EMA) at $114,000. However, these attempts were met with rejection, causing the price to retreat to the $111,300 support level. Another bullish bounce occurred from this level, only to be denied access again above the $113,800 resistance, leading to a fall just below the weekly support at $109,500 on Thursday. Despite this dip, the price rallied from its Thursday low, concluding the week at $112,225.

Looking ahead, several key support and resistance levels will define Bitcoin's price action. The $109,500 level, which corresponds to the 21-week EMA, is now a crucial floor that bulls must defend to establish a weekly higher low and initiate a reversal. Should this support fail, the next significant level is $105,000, with potential for a major reversal extending down to approximately $102,000. A breach of the $102,000 mark would open the door to major long-term support situated at $96,000.

On the upside, Bitcoin bulls are aiming for a weekly close above the $115,500 resistance level to successfully re-establish an uptrend. Achieving this would provide the necessary confidence to challenge the $118,000 resistance once more, likely paving the way for further gains. Beyond $118,000, the $121,000 level stands as the gateway to new all-time highs, although it is anticipated that this level may not hold for long if a weekly close above $118,000 is secured.

For the upcoming week, early trading is expected to see Bitcoin re-test the $109,500 low. Bulls will be eager to solidify this level as robust support for a potential rebound towards $113,800. Overcoming the $115,500 resistance level this week will likely demand exceptionally strong buying pressure, suggesting this level could act as a ceiling even if $113,800 is successfully conquered. While bulls will strive for a green candle to confirm last week as a higher low, the overall bias on the weekly chart remains bearish. Consequently, the $113,800 resistance level is expected to persist in the short term. A failure to hold $109,500 on the daily chart could trigger another significant price decline this week, potentially pushing Bitcoin to new lows and testing the $105,000 to $102,000 support zone.

The prevailing market sentiment is bearish, with bears firmly in control after a substantial red candle closed out the previous week. It is imperative for bulls to demonstrate considerable strength this week to defend the 21-week EMA support. The weekly chart will retain its bearish bias until a clear shift is demonstrated. To foster more positive price action in the subsequent weeks, bulls must decisively alter this bias, which could be achieved through a strong close this week. Furthermore, with September's interest rate cut already concluded, markets are now keenly anticipating additional rate cuts in the upcoming October and December Federal Open Market Committee (FOMC) meetings to ensure continued capital flow. Investors will be meticulously monitoring US financial reports for data that supports further rate reductions. Any adverse developments or impediments in these reports could lead to renewed bearish price action and increased selling pressure in the market.