<![CDATA[<figure class="image"><img src="https://cimg.co/news/125641/331725/btc-32.jpeg" srcset="" width="" class="content-img" alt=""><figcaption>Bitcoin Logo / Source: Adobe</figcaption></figure>Despite <a href="https://www.bloomberg.com/news/articles/2023-09-26/wall-street-echoes-fed-s-view-on-growth-higher-for-longer-rates">sharp downside in the US stock market</a> on Tuesday amid a fresh push higher in long-dated US yields to new multi-decade highs as traders pricing in a policy of higher interest rates for longer from the US Federal Reserve, Bitcoin (BTC) continues to hold up relatively well.It was last trading in the $26,200s, more than 17% down from the yearly highs it set in July above $31,800.However, the <a href="https://cryptonews.com/coins/bitcoin/">BTC</a> price remains more than 5% up from earlier monthly lows, as it clings on to its 21DMA for now.While enthusiasm has faded, investors continue to seem keen to accumulate Bitcoin ahead of <a href="https://cryptonews.com/news/bitcoin-halving-analyzing-effects-price-market-sentiment.htm">next year&rsquo;s halving</a> and <a href="https://cryptonews.com/news/bernstein-spot-bitcoin-etf-approval-would-spark-fresh-liquidity-new-cycle.htm">in anticipation of spot Bitcoin ETF approvals</a>.This has been holding the <a href="https://cryptonews.com/guides/bitcoin/">BTC</a> price in the upper $20,000s in recent months, but the case is building for a drop back towards $20,000.Here are three reasons why.<h2 id="strong-macro-headwinds-are-building-strong">Macro Headwinds Are Building</h2>Bitcoin is down around 15% since the start of Q3, thanks to a <a href="https://www.bloomberg.com/news/videos/2023-09-26/high-yields-low-volatility-really-concerns-us-newton-video">rise in US bond yields</a> and the US Dollar Index (DXY).The US 10-year yield was last at 4.54%, its highest since 2007, while the 30-year yield was last at 4.68%, its highest since 2011.The DXY, meanwhile was last at its highest levels since December 2022 above 106.This trend is being driven by <a href="https://www.bloomberg.com/news/articles/2023-09-26/dimon-warns-world-may-not-be-prepared-for-fed-at-7-toi-lmzl7rao">increasing bets that the US Federal Reserve will leave interest rates at higher levels for longer</a> thanks to inflation which is expected to remain at structurally higher levels over the coming years given the US economy&rsquo;s continued outperformance.But the Bitcoin (BTC) price has stabilized in recent weeks, despite continued upside in yields and the US dollar.Arguably then, the cryptocurrency doesn&rsquo;t properly reflect recent changes to the macro landscape could well see some &ldquo;catch-up&rdquo; via a break back to the low $20,000s.Macro is likely to remain a headwind for Bitcoin until optimism about a rate-cutting cycle takes the edge off of the recent US yield rally.&nbsp;<h2 id="strong-bitcoin-in-a-bearish-descending-triangle-strong">Bitcoin in a Bearish Descending Triangle</h2>Bitcoin has also spent the last few months forming a bearish descending triangle structure.These are widely regarded as important bearish technical structures.A break below support in the $25,000s could open the door to a wave of near-term technical selling.And the next major support zone is just under $20,000.<figure class="image"><img src="https://cimg.co/news/125641/331723/btc-1.jpg" srcset="https://cimg.co/news/125641/331723/responsive-images/btc-1___media_library_original_1792_718.jpg 1792w, https://cimg.co/news/125641/331723/responsive-images/btc-1___media_library_original_1200_481.jpg 1200w, https://cimg.co/news/125641/331723/responsive-images/btc-1___media_library_original_900_361.jpg 900w, https://cimg.co/news/125641/331723/responsive-images/btc-1___media_library_original_720_288.jpg 720w, https://cimg.co/news/125641/331723/responsive-images/btc-1___media_library_original_600_240.jpg 600w, https://cimg.co/news/125641/331723/responsive-images/btc-1___media_library_original_300_120.jpg 300w" width="1792" class="content-img" alt=""></figure><h2 id="strong-double-rejection-of-the-200dma-plus-death-cross-strong">Double Rejection of the 200DMA Plus &ldquo;Death Cross&rdquo;</h2>Another reason to be bearish from a technical standpoint is due to recent developments relating to Bitcoin&rsquo;s major moving averages.Since breaking below its 200DMA in August, Bitcoin has twice rejected the important level upon retests.That sends a song signal that the cryptocurrency&rsquo;s medium-term outlook has taken a shift for the worse, just as Bitcoin strong rebound from the 200DMA back in March was a strong signal of strong medium-term performance.Bitcoin also experienced a &ldquo;death cross&rdquo; this month, where its 50DMA fell under its 200DMA, another signal of a bearish shift in the market&rsquo;s medium-term momentum.<figure class="image"><img src="https://cimg.co/news/125641/331724/btc-2.jpg" srcset="https://cimg.co/news/125641/331724/responsive-images/btc-2___media_library_original_1791_715.jpg 1791w, https://cimg.co/news/125641/331724/responsive-images/btc-2___media_library_original_1200_479.jpg 1200w, https://cimg.co/news/125641/331724/responsive-images/btc-2___media_library_original_900_359.jpg 900w, https://cimg.co/news/125641/331724/responsive-images/btc-2___media_library_original_720_287.jpg 720w, https://cimg.co/news/125641/331724/responsive-images/btc-2___media_library_original_600_240.jpg 600w, https://cimg.co/news/125641/331724/responsive-images/btc-2___media_library_original_300_120.jpg 300w" width="1791" class="content-img" alt=""></figure>
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Three Reasons Why Bitcoin (BTC) Could Be About to Fall Back to $20,000

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