Bitcoin BTC$87,566.53 traders, buckle up. Renewed optimism around potential Fed rate cuts is lighting a hopeful spark for BTC’s recovery and there are some key price levels worth noting.
First up on the radar: the 200-hour simple moving average (SMA), currently seen close to $88,000. This level has been playing the role of a ceiling since Monday, putting the brakes on the upside moves.
But here’s the twist: This SMA has stopped sliding downward, signaling that the selling pressure might be losing steam. If BTC can break above this, it could rev up trader confidence and set the stage for a sharper recovery rally. Think of it as bitcoin shaking off the dust after a slow crawl.
Next resistance to watch? The $98,000 to $99,000 zone, a stubborn battleground marked by multiple daily lows earlier this month and back in June.
And then, the big daddy: the 50-week SMA just north of $102,000. This was the hero for bulls, acting as a strong support line multiple times throughout 2023, fueling bigger gains every time it held. But in early November, prices pierced through this level, confirming a bearish trend change.
If BTC can stage a triumphant comeback above this SMA, it would signal a revival of the big-picture bullish trend—think of it as the light at the end of the tunnel.
Key support levels
Now, don’t forget your safety nets: the most critical support level hovers around $83,680, where the 100-week SMA and a macro bullish trendline intersect. A break beneath this would be a red flag, cementing the recent bearish shift and potentially opening the door to deeper losses.
Should that happen, the next cushion to catch the fall is near $74,500, a level sellers ran out of steam in early April, paving the way for a renewed upswing.
Taken together, these key levels point to an exciting trading landscape, with major averages acting as gatekeepers, defining the battle lines between bulls and bears.