Bitcoin's relief rally may be 'fleeting.' Here's how long it may last.

MW Bitcoin's relief rally may be 'fleeting.' Here's how long it may last.

By Frances Yue

Bitcoin's relief rally could be "fleeting," but is likely to extend for another week or two from a technical perspective, according to Fairlead Strategies.

The price of bitcoin (BTCUSD), the largest cryptocurrency, has risen 7% over the past five days, staging a relief rally, though it is still 5.8% lower on a year-to-date basis, according to Dow Jones Market Data. Bitcoin was trading at around $88,037 on Monday afternoon, about 19.5% lower than its record high at $109,225 reached on Jan. 20, President Donald Trump's inauguration day.

Bitcoin rallied early this year as investors expected the regulatory environment for digital assets to become more friendly under the Trump administration. However, the cryptocurrency then tumbled along with other risk assets as fears around the uncertainty about Trump's tariff plans weighed on investor sentiment.

The largest crypto traded higher on Monday, along with stocks DJIA SPX, after reports indicated that Trump's reciprocal tariffs due April 2 are likely to be narrower than expected, while Trump said he "may give a lot of countries breaks."

Bitcoin's recent bounce is likely to extend in the coming days, as its short-term momentum has improved while the short-term overbought conditions were not in place, Katie Stockton, founder and managing partner of Fairlead Strategies, wrote in a Monday note.

The crypto faced a resistance level near its former support at $90,700 while its secondary resistance stood near $93,700. Its support level was at around $73,800, Stockton wrote.

However, bitcoin's intermediate-term momentum was to the downside while its weekly stochastics, a technical indicator, were not oversold, which increased the risk that the rebound is fleeting, noted Stockton. "We expect the same for most risk assets," she wrote.

"Bitcoin is in a cyclical uptrend, but with a monthly overbought downturn likely to be confirmed at month-end, there is risk that a period of digestion could be prolonged," according to Stockton.

-Frances Yue

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March 25, 2025 07:45 ET (11:45 GMT)

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