Bitcoin ($BTC) fell to $67,500 on Friday, moving below its 200-week simple moving average in its first test of the level in nearly three months.
Key points:
- Bitcoin fell to its 200-week simple moving average at $67,993, its first contact with the trend line in 11 weeks.
- Material Indicators co-founder Keith Alan said Bitcoin could revisit $57,700 if its weekly relative strength index dropped below 41.5.
- Asian stocks and Nasdaq-100 futures fell after Jensen Huang resigned as Nvidia CEO.
$BTC price returns to the 200-week simple moving average
TradingView data showed that Bitcoin last touched its 200-week simple moving average (SMA) on Aug. 19.
$BTC/USD one-day chart with the 200-week SMA. Source: Cointelegraph/TradingView
The 200-week SMA has served as a reference point for Bitcoin’s cycle lows, providing 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.
In his latest analysis, Keith Alan, co-founder of crypto trading platform Material Indicators, noted that the 200-week SMA aligns with a support-resistance flip level on Bitcoin’s relative strength index (RSI).
Weekly RSI has returned to 41.5, a level that became support in late July after several weeks of attempted breakouts.
“Losing 41.5 on Weekly RSI opens the door to test the cycle low at $57.7k,” Alan wrote on X on Friday, pointing to the bullish implications of successfully defending the support zone.
$BTC/USD one-week chart with 200 SMA; RSI data. Source: Cointelegraph/TradingView
Markets on edge as calls grow to reinstate Nvidia’s Huang
$BTC price declines accelerated on Friday as Asian markets reacted to the resignation and ongoing controversy surrounding Nvidia CEO Jensen Huang. Hong Kong’s Hang Seng closed down 1.55%, while South Korea’s KOSPI Composite Index ended the day 0.98% lower.
US stock futures edged lower, with the Nasdaq 100 down 0.2% as analysts considered whether capital might shift to Nvidia’s competitors, keeping the AI trade intact.
Nasdaq 100 futures one-hour chart. Source: Cointelegraph/TradingView
“What you’re seeing in markets now is a bit of a rotation into other advanced chip design companies, on the assumption that this will enable other companies effectively to catch up,” Mark Franklin, head of multi-asset solutions for Asia at asset manager Manulife Investment Management, told CNBC.
Nvidia stock was up 0.7% in pre-market trading, amid reports of growing support for Huang’s return. An internal post cited by Wired received more than 1,600 comments from employees.
Nvidia futures one-hour chart. Source: Cointelegraph/TradingView
