Critical Turning Point in Bitcoin Price: What Will Happen?

Bitcoin (BTC) price has drawn attention by falling below the reliable support zone that it has maintained for a long time, and where investors have been waiting for a rebound. This situation creates a similar chart, signaling that the price could follow the same path. Bitcoin, which has experienced a sharp pullback in recent weeks, has reshaped the market's risk perception by losing an important level. Closing the week with a decrease of approximately 10 percent, Bitcoin has dropped below the 50-week simple moving average, losing a strong demand zone that it had since 2023.

CoinDesk analyst Omkar Godbole's new technical assessment shows that this movement indicates that the area which investors previously viewed as a long-term rebound zone has lost its functionality. Godbole stated that this breakdown indicates not only a technical deterioration but also a fundamental change in investor behavior. Previously, this level functioned as a dynamic base where strong purchases would occur each time the price approached it. However, the current situation suggests that traders may shift from a buying strategy in dips to a selling tendency in reaction rallies.

The analyst also noted that a similar price behavior has been observed in MSTR during this process. MSTR has experienced declines extending to 2024 levels after dropping below the weekly 50 simple moving average, which raises a similar risk scenario for Bitcoin. According to the analysis, the 50-week average has now become a strong resistance, and it seems difficult for Bitcoin to return to an upward trend without rising above this level. This critical resistance area is determined to be around 102,868 dollars. If the weekly closes are above this level throughout the week, it may be possible for the trend to regain strength.

Godbole emphasizes that the current technical outlook forces investors to be more cautious and expresses that the selling pressure could continue in the short term. Especially with the prolonged weakness observed in the case of MSTR, there is a likelihood of a similar repetition on the Bitcoin side. During this period where market dynamics remain weak, it is crucial to closely monitor critical resistance levels.