Bitcoin (BTC) dropped to $67,500 on Friday, dipping below its 200-week simple moving average for the first time in nearly three months. The cryptocurrency tested this key trend line, which has historically acted as support or resistance during bear markets. Bitcoin last interacted with the 200-week SMA on August 19, and decisive moves above it have previously led to sharper rallies.
Keith Alan, co-founder of Material Indicators, warned that Bitcoin could fall to $57,700 if its weekly relative strength index (RSI) drops below 41.5. Alan noted that losing this RSI level would open the door to testing the cycle low at $57,700, while successfully defending the support zone would have bullish implications.
The downside pressure on Bitcoin accelerated as Asian stocks and Nasdaq-100 futures declined following Jensen Huang’s resignation as Nvidia CEO. Hong Kong’s Hang Seng Index fell 1.55%, and South Korea’s KOSPI Composite Index dropped 0.98%. US stock-market futures also dipped slightly, with the Nasdaq 100 falling 0.2% as investors rotated capital into Nvidia’s competitors.
Mark Franklin, head of multi-asset solutions for Asia at Manulife Investment Management, told CNBC that markets were seeing a rotation into other advanced chip design companies. Meanwhile, Nvidia stock was up 0.7% pre-market amid reports of growing support for Huang’s return, with an internal post drawing over 1,600 comments from employees.