Bitcoin's potential for pullback: coping with bearish patterns
Jul 02, 2025 pm 06:30 PMBitcoin may face a short-term pullback? Technical indicators suggest that there is a risk of adjustment, but the overall long-term trend remains positive. Let’s analyze this bearish pattern together.
Bitcoin Callback Risk Analysis: Identify the Current Bearish Pattern
As Bitcoin has just hit an all-time high, news of a short-term retracement has been reported in the market. Although the overall atmosphere is still relatively large, some analysts pointed out that a potential bearish structure may trigger a temporary decline in the price. Below we will explain the current trend in depth.
Bearish Signal: Decline Channel with Stochastic RSI Warns
Well-known analyst Lark Davis pointed out that Bitcoin is currently in a downward channel. The most recent fallback after touching the upper track of the channel has become an important signal, which means that the upward momentum has attenuated. In addition, the Stochastic RSI also showed a bearish cross, which is usually a warning sign that the price is about to weaken.
Short-term fluctuations or entry opportunities?
Davis believes that under the current technical pattern, short selling may be a good opportunity for short-term traders, and the target position is roughly located in the lower track of the channel. However, we must focus on a more macro trend – the overall direction of Bitcoin is still upward, so any decline can be temporary volatility.
The overall situation has not changed: bull market sentiment continues
Despite short-term negative signals, multiple factors still support Bitcoin to continue to rise. According to the crypto asset market report released by Bitwise Europe, the current market risk preference, liquidity and macroeconomic momentum are all conducive to the development of Bitcoin. Global Bitcoin Exchange Trading Products (ETPs) have accumulated net inflows this year to $14.3 billion, and the performance of U.S. spot ETFs has also continued to be strong.
Supported by the macro environment
Bullish sentiment is also driven by positive macroeconomics. Factors including the negotiations on new US-style trade agreements, the easing of the situation in Iran, and the Federal Reserve's possible restart of interest rate cut cycles are all creating a favorable environment for Bitcoin. Bitwise believes that these macro changes will continue to improve market sentiment and help crypto assets.
Institutional funds influx and future prospects
Large-scale purchases of BTC by large institutions like Strategy Inc. are also injecting momentum into the market. Many analysts predict that with the gradual entry of US pension funds, global sovereign wealth funds and even governments across the country, Bitcoin is expected to rise to the range of US$180,000 to US$250,000 this year.
How to deal with uncertainty?
Although there is a risk of a pullback in the short term, the mainstream market views are still firmly optimistic about the future of Bitcoin. The key is to stay alert, understand technical signals, and fully consider the current macroeconomic background.
What is the final conclusion?
Even though there are some bearish signs at present, Bitcoin’s uptrend has not changed in the longer term. So, please keep your bargaining chips in your hands! The journey is far from over.
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