Bitcoin Bulls Struggle to Keep $BTC from Falling Off a Cliff

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It seems that, in the ongoing drama of US-China trade tensions, Bitcoin‘s recovery has hit a bit of a roadblock. The price is now stuck in neutral, trading sideways like a car with a bad alternator. There’s one major trendline and one critical support level holding Bitcoin from a freefall. But let’s be honest – how long can they hold the line before it all comes crashing down?

Could $BTC Start to Compete with Gold for the ‘Safe Haven’ Title?

At the moment, Bitcoin is looking more like the weakling in the precious metals gym while gold and silver flex their muscles. With the markets currently feeling like a roller coaster ride – thanks, President Trump! – both gold and silver are showing impressive strength. But here’s the kicker: they’re ridiculously overbought. Meanwhile, Bitcoin is being sold off like last season’s fashion. So, is this the moment when Bitcoin makes its grand comeback? It’s possible, though you wouldn’t bet your life savings on it just yet.

The BTC/XAU chart shows some dramatic action, and not the good kind. Yes, Bitcoin just fell out of a descending channel in a rather dramatic fashion – kind of like a bad soap opera plot twist. But wait, the breakdown isn’t confirmed yet. The ratio has hit a strong support level at 26 oz, with an even more resilient level lurking just below at 24.6 oz. Plus, the daily Stochastic RSI indicators are at rock bottom – does that mean Bitcoin is about to have its ‘comeback kid’ moment? Who knows, but it’s something to watch.

Is $BTC About to Drop to the Last Line of Defense?

The 4-hour chart paints a rather gloomy picture for Bitcoin. The bears appear to have succeeded in turning the $112,000 level into a brick wall. Now, the price is crawling sideways under a major trendline, and this isn’t a promising sign. It could very well be heading towards the last support level at $108,000. Yikes.

The Stochastic RSI indicators might be heading upwards, but if this bearish trend continues, they could quickly reverse course. It’s like the market is playing a cruel game of musical chairs, and the music might stop at $108,000. Could this be the bottom? Maybe – but if the Trump/China war of words turns into something more disastrous, Bitcoin could find itself falling even further.

200-Day SMA Could Be the Final Lifeline

If you’ve been following Bitcoin’s ups and downs, you know it’s been teetering below the $112,000 resistance level like a tightrope walker who’s had one too many cocktails. The fall to $108,000 is starting to look more and more likely, and there’s really only one thing standing in its way: the 200-day simple moving average (SMA).

Last Friday, the SMA acted as a safety net, preventing a complete disaster. It could very well be the last line of defense again, especially since it aligns with the $108,000 support level. Will it hold? Only time will tell, but this could be the key moment when Bitcoin either survives or gets dragged under.

The Ascending Trendline Must Hold – Or Else

If you’re still holding out hope for Bitcoin, this is the moment of truth. The weekly chart is clear: the ascending trendline must hold, or we might be witnessing the beginning of the end. Sure, Bitcoin could dip below $108,000, and it could even break through that trendline. But if that happens, it’s going to need a serious recovery to avoid a full-on nosedive into bear market territory. This week’s close is crucial. Buckle up.

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2025-10-16 13:00