Bitcoin’s Bounce Zone Shattered, Echoes Strategy’s (MSTR) Downtrend

Bitcoin has fallen below a critical support level, breaking a previously reliable bounce zone and reflecting a bearish trend similar to that observed in Strategy (MSTR). This decline, which saw Bitcoin drop nearly 10% over the week leading to November 16, has invalidated a major demand zone and shifts market sentiment toward increased caution and potential extended sell-offs. The 50-week simple moving average (SMA), historically a strong support, has now turned into resistance, indicating that any uptick will likely encounter selling pressure. Analysts suggest that the reliance on this level has diminished, prompting traders to consider selling on bounces instead of buying dips. This scenario parallels the experience of Strategy, which experienced a similar breach of its 50-week SMA in September, leading to a prolonged decline. As Bitcoin approaches this critical pivot, sustained weekly closes above $102,868 are necessary to signal a return to bullish momentum.

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