Bitcoin Falls Below $94,000, Wiping Out 2025 Gains as Bearish Sentiment Dominates
Bitcoin has experienced a important downturn, falling below the $94,000 mark and erasing gains accumulated throughout 2025. The cryptocurrency is currently down over 25% from its October highs, fueling widespread bearish sentiment among investors.
The decline follows a loss of major support levels, leaving little optimism for a substantial rally or new price peaks before year-end. Analysis of the four-year Bitcoin cycle theory suggests the peak for this cycle may have already occurred in early October, wiht limited potential for a sustained recovery in the near term. While a late-cycle high in the first quarter of 2026 remains a possibility, it is considered improbable given Bitcoin’s recent weakness and the continued strength of conventional stock markets. A potential bearish outlook for the stock market further diminishes the likelihood of a Bitcoin rally.
Key Terminology:
* Bulls/Bullish: Investors anticipating price increases.
* Bears/Bearish: Investors anticipating price decreases.
* Support Level: A price point where an asset is expected to find buying interest. Repeated tests of support weaken its effectiveness.
* Resistance Level: A price point where an asset is expected to encounter selling pressure. Repeated tests of resistance weaken its effectiveness.
* Fibonacci Retracements and extensions: Analytical tools utilizing ratios derived from the golden ratio (1.618 and 0.618) to identify potential support and resistance levels.
* Volume Profile: A chart indicator displaying transaction volume at specific price levels,with the Point of Control (POC) indicating the price with the highest volume.
* Broadening Wedge: A chart pattern characterized by diverging trend lines representing resistance and support, indicating increasing price volatility and typically resulting in higher highs and lower lows.
