Bitcoin slips under 200-week average amid $57.7K risk

Bitcoin fell to $67,500 on Friday, below its 200-week simple moving average of $67,993. TradingView data showed the cryptocurrency last touched the average on Aug. 19, making Friday’s move the first test of the level in 11 weeks.

The 200-week average has served as a reference point for Bitcoin’s cycle lows and has acted as support or resistance during extended declines. Bitcoin traded near the average from March to October 2023 and again from June through mid-August this year.

Keith Alan, co-founder of crypto trading platform Material Indicators, identified a similar support and resistance level on Bitcoin’s weekly relative strength index, or RSI. The indicator has returned to 41.5, a level that provided support in late July after several weeks of attempts to move above it.

“Losing 41.5 on Weekly RSI opens the door to test the cycle low at $57.7k,” Alan wrote on X on Friday. He added that holding the level would support the bullish case for Bitcoin.

Bitcoin’s decline came after reports that Nvidia CEO Jensen Huang had resigned and left the company’s board. Hong Kong’s Hang Seng Index closed 1.55% lower, while South Korea’s KOSPI Composite Index fell 0.98%.

Nasdaq-100 futures fell 0.2% as investors assessed whether capital could shift to Nvidia’s competitors in the advanced-chip industry. Mark Franklin, head of multi-asset solutions for Asia at Manulife Investment Management, described the market as rotating into other chip-design companies that could narrow Nvidia’s lead.

Nvidia shares rose 0.7% in premarket trading Friday after reports of growing employee support for Huang’s return. An internal post cited in those reports received more than 1,600 comments.

Reviewed and fact-checked by Alex Panasenko on November 13.