Bitcoin just broke through a prism milestone that it has held for two months, and the sellers are now calling the shots.
The credible milestone? Bitcoin’s average price over the last 100 weeks. Since November, this so-called 100-week simple moving average has consistently acted as a safety net, a level where buyers have continued to buy every dip for nine consecutive weeks.
However, today prices have fallen below $85,000, moving convincingly below the 100-week moving average line, as seen in the chart below. The breakdown means that sellers have overwhelmed all the buying power around the support and established a potential path lower.
So where can the sale find the next wave of buyers?
Last April, buyers showed up at around $75,000, stopping the selling at that point, making it a key level to watch now.
Below that is the next support at the 200-week average, which is at $58,000.
While chart patterns are popular, they don’t always guarantee directional betting – just like any big picture or basic clue. Smart traders always watch for a key level that, if regained, turns the bearish sentiment on its head.
Right now, for bitcoin, it’s $95,000, a level where buyers continued to be outbid by sellers early this month and into December. The bullish case comes back to the table if prices exceed this level.
