bitcoin It briefly fell below $100,000 on Tuesday for the first time since June, reaching lows around $98,951. The drop took the largest cryptocurrency below two key support levels needed to sustain the current bull market, raising concerns that the drop could gain strength.
The two levels, the 365-day simple moving average (SMA) and the 365-day exponential moving average (EMA), are currently $102,055 and $99,924, respectively. Both have already been tested during this bull cycle.
In August 2024, bitcoin used the 365-day SMA, the average closing price during that period giving equal weight to each, as a key support level around $48,963, while it briefly fell below the EMA price, giving more weight to recent readings. Then, during the April “tariff tantrum,” bitcoin fell as low as $76,500, breaking below both moving averages before recovering them shortly after.
Where does the selling pressure come from?
Selling pressure continues to come from long-term holders, defined as investors who have held their bitcoins for at least 155 days. The supply of this cohort is now approximately 14.4 million BTC, up from more than 14.7 million BTC at the July peak.
This marks the third notable wave of selling for this group since late 2023. Each time downward pressure has been added leading to price consolidation or even corrections (10% or more drops) after a period of price rally. The previous case occurred during the November 2024 demonstration following President Trump’s election victory.
