Bitcoin fell below its 200-day moving average of $73,137 on Thursday, a closely watched technical indicator that helps investors assess the cryptocurrency's long-term price trend. BTC currently trades around $71,000, approximately 3% below that level.
The 200-day moving average is significant because it helps distinguish whether Bitcoin's long-term trend is strengthening or weakening. Analysts note that failure to reclaim this level could lead to further downside pressure.
Market Pressures
Several factors have contributed to recent selling pressure. US spot Bitcoin ETFs experienced outflows of $299.8 million on Wednesday, extending five consecutive days of outflows. BlackRock's IBIT fund accounted for the majority of these exits.
Broader market conditions have also weighed on Bitcoin. The Federal Reserve is widely expected to raise interest rates in December following hotter-than-expected inflation data. The 10-year Treasury yield has returned to approximately 5%, while the dollar index approached a 19-month high. Gold and silver each declined more than 2%.
Additional market developments include index provider MSCI's confirmation that it will remove MicroStrategy (MSTR), a Bitcoin treasury company, from two US indexes.
Technical Levels and Outlook
If selling continues, analysts identify $68,000 and $67,000 as potential support levels. Reclaiming the 200-day moving average would be necessary for Bitcoin to regain upward momentum, with $75,000 representing the next major resistance point.
Bitcoin's Relative Strength Index (RSI) has fallen to 30, suggesting the asset may be oversold and potentially due for a rebound. However, historical precedent offers mixed signals—a similar RSI reading on June 30 marked a market bottom, while an equivalent reading earlier in June preceded further price declines.
The $67,000–$68,000 range represents the next key area to monitor if downward price pressure persists.
