Bitcoin Tests Critical Support Zone Near $75,000 Level
Bitcoin shed its post-election gains as AI-driven stock fears pushed it back into a key swing area between $74,925 and $76,052.
Bitcoin retreated sharply Monday, erasing the gains it accumulated following November's election results as a broad sell-off in equities — triggered by artificial intelligence concerns — dragged the cryptocurrency back below its 100-day moving average. The pullback returned Bitcoin to a technical swing area that has repeatedly served as a battleground since August, with the coin trading near $75,632 at the time of analysis.
That swing area, bounded by $74,925 on the lower end and $76,052 on the upper end, now defines the immediate outlook. The upper boundary corresponds to the 38.2% Fibonacci retracement of the rally from the July low. So long as Bitcoin holds above $74,925, buyers retain a defined level to defend. A sustained move back above $76,052 would be the first technical signal that buyers are regaining footing.
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Beyond the swing area, several moving averages stand as the next hurdles. The 100-day moving average sits at $77,061, and clearing that level would open the door to a tighter zone formed by the 100-hour and 200-hour moving averages at $77,631 and $77,795 — close enough to treat as a single resistance band. A clean break through both would shift momentum toward the next swing target near $79,146.
Should the floor at $74,925 fail instead, downside focus would shift to the 200-day moving average at $73,190, followed by the 50% midpoint of the July rally at $72,554. Analysts note the distinction between a brief dip below support that quickly recovers — a scenario that would pressure sellers — versus a sustained break that sees any bounce stall near the old floor, confirming a bearish shift in control.
Until Bitcoin reclaims the key moving averages overhead, the technical edge remains with sellers. Continue reading at Forexlive.
