The Bitcoin bulls just can’t seem to staunch the relentless tide of selling. Each new push to the upside seems weaker than the last. Poor jobs data and fears that AI companies have become overbought tie into bearish market sentiment. Can Bitcoin suffer yet another price dip?
Jobs are falling as AI might also be about to dip
The worst unemployment figures for the month of October in the last twenty years saw 153,000 layoffs. According to a report by Challenger, Gray & Christmas, the main reason for what is now more than 1 million job losses since the start of 2025 is the effects of DOGE and its government cost-cutting actions. Another main contributor to the loss of jobs has been blamed on the rise of AI, which has allowed companies to restructure and automate processes.
On the subject of AI, stories now abound across mainstream media that are exploring the idea that AI has become vastly overbought, and that this is a bubble that could burst with huge repercussions for the US and global economies.
Big Short investor Michael Burry has been in the news recently given that his company is publicly betting against tech giants Nvidia and Palantir. The legendary investor appears to be convinced that AI is in a bubble and is shorting these stocks accordingly.
S&P 500 ripe for a big pullback?
Source: TradingView
The S&P 500 does look as though it may be ready for a big dip that could even out-do the plunge caused by the Trump tariffs earlier this year. Since that plunge, the Index more than recovered, but as can be seen in the chart above, the price has reached the top of the blue channel, and it might be expected to start falling from here. The bottom of the channel is a realistic target, but will President Trump allow it to fall that far?
Weak $BTC bounce on the way back down
Source: TradingView
The short-term chart for $BTC suggests that the price is going to keep coming down from a relatively weak bounce. It can be seen that the price is staying below the descending trendline and looks to be heading back to the previous low.
Having said that, the Relative Strength Index at the bottom of the chart is showing that the price is about to enter the oversold area again, and the next time there is a bounce, it is more likely to break through the descending trendline.
Major trendline retest could happen soon
Source: TradingView
The daily chart does rather suggest that the $BTC price is going to come down one last time to retest the major trendline below. This would be only the third retest of what is an incredibly important trendline. If the retest doesn’t happen here, it would likely touch the trendline a bit further along.
At the bottom of the chart, the Stochastic RSI indicators are crossing back up. They may not still be doing so at the end of the week, but this doesn’t really matter as the indicators are quite near the bottom, and they would likely cross back up at some point next week anyway.
Potential bear market – but momentum indicators not in line with this
Source: TradingView
If the $BTC price comes down to retest the major trendline, but then falls through and confirms below, the writing would be on the wall for a bear market. In fact, one can see that the next very strong price structure below is the top of the last bull market at $69,000.
In the bear market of 2022, the price did come all the way back to retest the top of the previous bull market – could this be about to happen once again?
However, in favour of a continuation of the bull market, the 2-week Stochastic RSI indicators are coming back down. They could bottom and cross back up in the next month or so. The weekly indicators are almost at the bottom now. This does not suggest an imminent bear market. Nevertheless, all eyes will be on how the $BTC price reacts to the major trendline.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.