Tuesday, 02 January 2024 12:17 GMT

Bitcoin Tests A Familiar Floor As Traders Weigh A New High Or A Pause


(MENAFN- The Rio Times) Bitcoin is back at a familiar inflection point. For the fourth time in two years, weekly downward pressure has met the rising 50-week moving average-a level that acted like a springboard on October 13, 2023, September 23, 2024, and April 7, 2025.

This week's tag near that trend line has revived a simple question with big consequences: does the market have one more push to fresh highs, or does momentum need a breather?

Price history argues for patience with a constructive bias. Each prior visit to the 50-week average preceded a reversal and, eventually, new peaks. The long-term uptrend remains intact, with price still well above the deeper base built over 2023–24.

That said, the backdrop is more mixed than on earlier bounces: weekly momentum gauges have slipped, and relative strength sits below mid-range, leaving bulls in need of confirmation rather than blind faith.

For confirmation, traders are watching a weekly close that reclaims the short- and medium-term averages-roughly above 104,300 and 103,000-and, ideally, clears last week's high at 110,730.



That combination would indicate buyers have reasserted control and put a retest of the prior peak around 110–111k within reach; a subsequent weekly close through that zone would set up a new-high attempt. Failure to confirm carries its own markers.

One decisive-or two consecutive-weekly closes below the 50-week average near 100,350 would warn that the spring has lost tension, opening room for a fuller pullback toward layered supports around 95,000, then 92,000, with deeper cushion in the 85,000–80,000 region before any renewed advance.

For longer-horizon investors, the signal is straightforward: the primary trend is still up unless that 50-week level gives way with authority.

For shorter-term traders, risk control matters more than bravado -entries on confirmed reversals with stops tucked below the average preserve capital if the pattern finally fails.

The broader takeaway will please market pragmatists: when policy noise fades, disciplined positioning and price discovery tend to win.

Periods of fiscal excess and interventionist tilting rarely produce clarity; rules-based behavior and respect for market signals usually do. Bitcoin 's current test is another reminder that durable gains come not from slogans, but from letting the tape prove itself.

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The Rio Times

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