The Potential Fall of Bitcoin (BTC) Price
Last week, Bitcoin (BTC) experienced its worst weekly performance of the year with a 10.5% decline. Currently, the BTC price is stabilizing around $26,000. However, upcoming US data releases and comments from Fed policymakers have the potential to push long-dated US government bond yields to new multi-decade highs, further impacting the crypto and US stock markets.
Main Breakdown:
- Bitcoin’s price remains vulnerable to near-term downside without fresh updates on bullish narratives.
- Bitcoin has experienced six stages of rally and decline this year.
- If following the pattern of the previous rallies, Bitcoin may only fall an additional 2-4% before the rally resumes.
- However, this pullback is more concerning as it has violated long-term support levels and shows signs of buyer exhaustion.
- On-chain metrics indicate a potential faltering recovery from the 2022 bear market.
Bitcoin is at risk of falling below support at $24,750, which could lead to a further drop to $20,000. The current oversold condition according to the Relative Strength Index (RSI) may provide some temporary relief before the next drop occurs.
Hot Take:
Bitcoin’s recent decline and violation of support levels raise concerns about its future performance. The cryptocurrency may face further downward pressure, potentially reaching $20,000. However, the oversold condition could offer a temporary respite. It remains crucial to monitor upcoming data releases and Fed commentary for potential impacts on Bitcoin and the broader market.
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