This past week, Bitcoin’s correction took another drastic turn as prices once again reached the $100,000 psychological price zone, triggering heavy waves of liquidation. Although the major cryptocurrency saw some rebound afterward, the current market price remains 19.02% away from its all-time high of $126,198. Hoping for a sustainable recovery, a popular analyst with the X username PlanD has outlined one critical market condition.
Bitcoin 50-week EMA has a bullish structure – analyst
In one X message on November 7, PlanD will share an insightful analysis of Bitcoin’s latest price movement. The prominent market expert notes that Bitcoin’s rebound from $100,700 may have confirmed a bottom formation. While price declines below $100,700 could still occur, PlanD emphasizes the importance of watching for a bullish weekly close above this crucial support level.
The importance of the $100,700 price zone mainly stems from its alignment with Bitcoin’s 50-week exponential moving average (EMA). Since 2022, this indicator has served as a crucial benchmark, with price crosses often signaling a change in market trends. In the current bull run, Bitcoin has decisively retested the 50-week EMA three times, each time resulting in a price surge to higher levels.
Amid the recent correction, Bitcoin once again reached this support zone, which PlanD describes as crucial for maintaining a bullish structure for a possible recovery. As long as market bulls hold the price point above this indicator, the analyst predicts new bullish price action with potential targets between $116,000 – $120,000 in the near term.
After a steady recovery, PlanD’s further analysis suggests that Bitcoin retains strong upside potential, with current momentum aligning with an ascending channel that began in late 2024 and projecting a possible move towards $176,000. At the same time, a broader cup-and-handle formation has developed since 2023, indicating an even larger long-term target of around $340,000, reinforcing the bullish outlook for the asset.
Bitcoin price overview
At the time of writing, Bitcoin is trading at $102,277, reflecting a slight loss of 0.23% in the past 24 hours. At the same time, weekly and monthly losses of 6.98% and 16.23% indicate that bearish sentiment remains dominant despite a modest increase of $100,000.
Bitcoin’s retest to the $100,000 level proved crucial in the ongoing correction, prompting several adverse developments. This included a drop in the price realized by investors below $50,000, and losses among the top buyers reaching approximately $0.16 billion per hour.
All of these events, including the subsequent price rally, all underscore the crucial psychological importance of the $100,000 zone in the current market structure.