Bitcoin fell to $67,500 on Friday, slipping below its 200-week simple moving average at $67,993 on its first test of the level in nearly three months.
TradingView data showed Bitcoin last touched the 200-week simple moving average on Aug. 19.
200-week trend line back in focus
The 200-week simple moving average has served as a reference point for Bitcoin’s cycle lows, acting as support or resistance during bear markets. Bitcoin traded around the average from March to October 2023 and again from June to mid-August this year. Decisive moves back above it on the weekly chart have preceded sharper rallies.
Keith Alan, cofounder of crypto trading platform Material Indicators, flagged the 200-week simple moving average as having confluence with a resistance-support flip level on Bitcoin’s relative strength index.
Weekly RSI has returned to 41.5, a level it established as support in late July after spending several weeks attempting a breakout.
“Losing 41.5 on Weekly RSI opens the door to test the cycle low at $57.7k,” Alan wrote Friday, also noting the bullish implications of successfully defending the support zone.
Asian stocks and US futures weaken
Bitcoin’s price downside accelerated on Friday as Asia markets reacted to the resignation and ongoing controversy around Nvidia CEO Jensen Huang.
Hong Kong’s Hang Seng finished the day down 1.55%, while South Korea’s KOSPI Composite Index ended 0.98% lower.
US stock-market futures fell slightly, with the Nasdaq 100 falling 0.2% as analysis pointed to a redistribution of capital into Nvidia’s competitors, preserving the AI trade.
Mark Franklin, head of multi-asset solutions for Asia at asset manager Manulife Investment Management, told CNBC that markets were seeing “a bit of a rotation into other advanced chip design companies, on the assumption that this will enable other companies effectively to catch up.”
Nvidia stock was 0.7% higher pre-market amid reports of growing support for Huang’s return. An internal post quoted by Wired drew more than 1,600 comments from employees.
