Bitcoin's Direction Downward: Critical Support Levels Being Determined

Bitcoin Is Losing Momentum

In recent weeks, Bitcoin, one of the stars of the cryptocurrency market, rose to 107 thousand 500 dollars after a rebound starting from the 99 thousand dollar level. However, the direction of Bitcoin, the largest cryptocurrency by market cap, has turned downward again. Yesterday, it closed at around 103 thousand dollars, having lost 2.80%. As of 06:00 TRT, Bitcoin is once again trading close to the 103 thousand dollar mark.

Critical Support and Resistance Levels

According to analysts, the 107 thousand 500 dollar level, which has been the focal point for the past week, was not surpassed on the first attempt. Technical analyses indicate that the lower 101 thousand 500 dollar interim support level, along with the 99 thousand dollar main support level, should be closely monitored. Maintaining these critical support levels is essential for BTC to regain upward momentum.

Reasons for Bitcoin's Decline

While the market seeks an answer to the question, "Why can't Bitcoin rise?" recent balloon concerns regarding stocks of US technology companies have negatively impacted cryptocurrency assets as well. Additionally, following the Democratic victories in the recent state elections in the US, uncertainties about the future of the previous Trump administration, which supported crypto assets, have come to the forefront.

Institutional Demand is Increasing

Recent declines in Bitcoin have prompted institutional investors to re-enter the market. Strategy, the largest institutional investor in Bitcoin, purchased 487 units of Bitcoin between November 3-9 for an average price of 102 thousand 557 dollars, totaling 49.9 million dollars. Currently, Strategy holds 641 thousand 692 units of Bitcoin in its portfolio, with the average cost of these assets estimated to be around 74 thousand dollars.