- Bitcoin fell nearly 10% over the seven days ending Nov. 16, dropping below a critical support level.
- The 50-week simple moving average (SMA), previously a strong demand zone, has been breached and now acts as resistance.
- This development signals a shift from a bullish pattern to increased caution and potential extended sell-offs.
- MicroStrategy (MSTR), a major publicly-listed Bitcoin holding firm, experienced a similar 50-week SMA breach earlier, leading to prolonged declines.
- Bitcoin’s next significant resistance level lies near $102,900, where selling pressure may increase.
Bitcoin lost almost 10% in the week ending November 16, closing well below its 50-week simple moving average (SMA), a key technical support level. This break marks a change in market dynamics, moving away from a solid bullish behavior that had been reliable since early 2023. The 50-week SMA had repeatedly served as a floor where buyers entered, supporting upward price moves.
The failure to hold this average signifies the end of a major demand zone and introduces a more cautious stance among traders, who might now focus on selling during price rallies instead of buying dips. A similar pattern occurred with MicroStrategy (MSTR), which breached its 50-week SMA in September and has since seen its stock price fall to around $200, the lowest since October 2024.
The former support at the 50-week SMA has turned into resistance for Bitcoin, currently around $102,868. For the cryptocurrency to regain bullish momentum, it would require sustained weekly closing prices above this level.
The breach of this average could lead to extended price declines, as it undercuts the prior confidence traders had in this bounce zone. Continuous monitoring of price action around the $102,900 resistance will be essential to assess potential trend changes. Further details can be found via TradingView.
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