Bitcoin Eyes ‘Moment Of Truth’ As Price Retests $100,000 Support – Is The Rally Over?

After failing to shut the week above a vital stage, Bitcoin (BTC) is trying to carry $100,000 as help, main some analysts to counsel that that is the make-or-break second for the cryptocurrency.

Bitcoin Plunges To Physiological Barrier

On Tuesday, Bitcoin noticed a 9% drop from its weekly opening, dropping to the $100,000 space for the primary time in months. The flagship crypto has been buying and selling above $105,000 since late June, hovering between $108,000-$120,000 over the previous 4 months.

During the early October correction, BTC’s worth briefly deviated beneath these essential ranges, hitting a three-month low of $102,000 earlier than recovering. Since then, the cryptocurrency has struggled to reclaim the mid-zone of its native vary, falling to the $106,000-$108,000 space a number of instances within the every day timeframe.

As the worth retested the $100,000 stage, Sjuul from AltCryptoGems noted that Bitcoin has now damaged beneath its tenth of October low, which was “the final main stage earlier than the $98K low from the Middle Eastern warfare fud again in June.”

Analyst Ted Pillows highlighted that BTC has two large liquidity clusters on the longer timeframes. Per the chart, the primary cluster sits across the $90,000 stage, which additionally coincides with an open CME Gap from Q2.

Meanwhile, the second cluster sits across the all-time high space at $126,000. “Given that the market is trying weak now, a dump to fill the CME hole earlier than reversal may occur,” the market watcher warned.

However, Ali Martinez advised {that a} 5%-11% rebound from the present space is feasible. The chart exhibits that Bitcoin has been buying and selling between $101,300-$124,000 worth vary since May, bouncing from the decrease boundary every time it was retested. If BTC holds this space, it may surge to not less than $106,500 or $112,000, the analyst asserted.

BTC Retests 50-Week EMA

Rekt Capital highlighted that BTC had reached the 50-week Exponential Moving Average (EMA). The analyst defined that after closing beneath the 21-week EMA, Bitcoin was deviating beneath its vary lows for the fifth consecutive week.

The 21-week EMA has served as essential help throughout pullbacks since late Q2. However, it was misplaced amid the current market volatility. Last week, a number of analysts warned that closing above this stage was essential to show it again into help and stop a bigger pullback.

Per the Tuesday put up, the 50-week EMA, sitting across the $100,000 stage, “would in all probability solely get tagged on confirmed breakdown from $108k,” that means that the flagship crypto might want to shut the week above this stage to keep up its present worth vary.

Similarly, Crypto Bullet pointed out that the 50-week MA retest was “the second of fact” for BTC. Notably, the cryptocurrency has retested this indicator thrice this cycle, marking the underside of every corrective part and the beginning of a brand new rally to a brand new all-time high (ATH).

The market watcher warned that dropping this stage would imply “it’s lights out” for the flagship cryptocurrency. However, a rebound from this space may set the stage for a worth restoration and a possible bullish rally in late This fall.

As of this writing, Bitcoin is buying and selling at $100,356, a 6% decline within the every day timeframe.