In the last week, Bitcoin’s correction took another drastic turn as prices retested the psychological $100,000 price zone, triggering heavy waves of liquidation. Although the premier cryptocurrency witnessed some rebound after, the current market price remains 19.02% away from the all-time high at $126,198. In the hope of a sustained recovery, a popular analyst with the X username PlanD has outlined one critical market condition.

Bitcoin 50-Week EMA Holds Bullish Structure – Analyst

In an X post on November 7, PlanD shares insightful analysis on Bitcoin’s latest price movement. The prominent market expert notes Bitcoin’s bounce of $100,700 may have confirmed a bottom formation. Although price dips below $100,700 could still occur, PlanD emphasized the importance of watching out for a bullish weekly close above this crucial support level.

Notably, the importance of the $100,700 price zone comes from its alignment with Bitcoin’s 50-week exponential moving average (EMA). Since 2022, this indicator has acted as a crucial metric, with price crosses often signaling a change in market trends. In the present bull run, Bitcoin has decisively retested the 50-week EMA thrice, each time resulting in a price bounce to higher levels.

Amid the recent correction, Bitcoin famously hit this support zone again, which PlanD describes as critical to keeping a bullish structure for a possible rebound. As long as market bulls hold the price point above this indicator, the analyst predicts another bullish price action with potential targets between $116,000 – $120,000 in the short-term.

Following a steady recovery, PlanD’s further analysis suggests that Bitcoin maintains strong upside potential, with its current momentum aligning with an ascending channel that began in late 2024 and projecting a possible move toward $176,000. In parallel, a broader cup-and-handle formation has been developing since 2023, signaling an even larger long-term target around $340,000, reinforcing the bullish outlook for the asset.

Bitcoin Price Overview

At the time of writing, Bitcoin trades at $102,277, reflecting a slight 0.23% loss in the last 24 hours. In tandem, weekly and monthly losses of 6.98% and 16.23% indicate that bearish sentiment remains dominant despite a modest price bounce off $100,000. 

Bitcoin’s retest of the $100,000 level proved pivotal in the ongoing correction, triggering several adverse developments. These included a drop in the investors’ realized price to below $50,000, and losses among top buyers reaching approximately $0.16 billion per hour.

All these events, including the subsequent price rebound all underscore the critical psychological importance of the $100,000 zone in the current market structure.

After failing to close the week above a crucial level, Bitcoin (BTC) is attempting to hold $100,000 as support, leading some analysts to suggest that this is the make-or-break moment for the cryptocurrency.

Bitcoin Plunges To Physiological Barrier

On Tuesday, Bitcoin saw a 9% drop from its weekly opening, dropping to the $100,000 area for the first time in months. The flagship crypto has been trading above $105,000 since late June, hovering between $108,000-$120,000 over the past four months.

During the early October correction, BTC’s price briefly deviated below these crucial levels, hitting a three-month low of $102,000 before recovering. Since then, the cryptocurrency has struggled to reclaim the mid-zone of its local range, falling to the $106,000-$108,000 area multiple times in the daily timeframe.

As the price retested the $100,000 level, Sjuul from AltCryptoGems noted that Bitcoin has now broken below its 10th of October low, which was “the last major level before the $98K low from the Middle Eastern war fud back in June.”

Analyst Ted Pillows highlighted that BTC has two massive liquidity clusters on the longer timeframes. Per the chart, the first cluster sits around the $90,000 level, which also coincides with an open CME Gap from Q2.

Meanwhile, the second cluster sits around the all-time high area at $126,000. “Given that the market is looking weak now, a dump to fill the CME gap before reversal could happen,” the market watcher warned.

However, Ali Martinez suggested that a 5%-11% rebound from the current area is possible. The chart shows that Bitcoin has been trading between $101,300-$124,000 price range since May, bouncing from the lower boundary each time it was retested. If BTC holds this area, it could surge to at least $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 explained that after closing below the 21-week EMA, Bitcoin was deviating below its range lows for the fifth consecutive week.

The 21-week EMA has served as crucial support during pullbacks since late Q2. However, it was lost amid the recent market volatility. Last week, multiple analysts warned that closing above this level was crucial to turn it back into support and prevent a larger pullback.

Per the Tuesday post, the 50-week EMA, sitting around the $100,000 level, “would probably only get tagged on confirmed breakdown from $108k,” meaning that the flagship crypto will need to close the week above this level to maintain its current price range.

Similarly, Crypto Bullet pointed out that the 50-week MA retest was “the moment of truth” for BTC. Notably, the cryptocurrency has retested this indicator three times this cycle, marking the bottom of each corrective phase and the start of a new rally to a new all-time high (ATH).

The market watcher warned that losing this level would mean “it’s lights out” for the flagship cryptocurrency. However, a rebound from this area could set the stage for a price recovery and a potential bullish rally in late Q4.

As of this writing, Bitcoin is trading at $100,356, a 6% decline in the daily timeframe.