Bitcoin Bears Eye Retest of Key $25,000 Support – How Far Might the BTC Price Fall?
After last week’s sharp 10.5% decline, which marked Bitcoin (BTC)’s worst weekly performance so far this year, the BTC price has largely settled on Monday.
Bitcoin was last moving sideways within thin ranges on either side of $26,000 as traders look ahead to the upcoming week.
Will the upcoming raft of US data releases and commentary from Fed policymakers (Fed Chair Jerome Powell is speaking on Friday) push long-dated US government bond yields to fresh multi-decade highs, putting crypto and US stock markets under further pressure?
Will technical selling after last week’s break below the 2023 uptrend and 200-Day Moving Average (DMA) continue to pressure the BTC price?
In the absence of fresh updates regarding bullish Bitcoin narratives such as the raft of spot Bitcoin Exchange Traded Fund (ETF) applications that were filed back in June by Wall Street heavyweights like BlackRock, Fidelity and Vanguard, Bitcoin remains vulnerable to further near-term downside.
Let’s examine how far it might fall.
Despite the more than 18% pullback from the multi-year highs it printed back in July near $32,000, Bitcoin is still up 56% for the year.
This rally has been far from a straight line.
Indeed, 2023’s rally has so far happened in six stages.
The first stage was a rapid more than 50% rally from the year’s starting point around $16,500 to the February highs above $25,000.
The second stage was a 22.5% pullback from the February highs to the March lows under $20,000.
The third stage was a near 60% rally from the March rally to the April highs above $31,000.
The fourth stage was a slightly more than 20% pullback from the April highs to the June lows under $25,000.
The fifth stage was a subsequent near 30% rally from the June lows to the July yearly
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