Current price action is in a precarious position. As the market dips below the $100,000 psychological level, we are entering a crucial technical battleground.
โThe most reliable indicator for a market regime shift is the 50-Week Moving Average (50MA):
โThe Bull/Bear Rule: Historically, multiple weekly closes below the 50MA have coincided with the end of the bull phase and the start of a broader bear market.
โThe Current Risk: We are now flirting with the 50MA, which sits near the $100,000โ$103,000 zone (depending on the data feed). A single weekly close below this is a major bearish signal.
โThe "Fakeout" Danger: There is a high chance the first break is a major fakeoutโa common market maneuver to trap late shorters or shake out weak hands. We must wait for two confirmed closes to signal a true bear market.
โThis volatility creates a massive discount zone for long-term investors if the bulls successfully reclaim the 50MA support.
โForeheadburns View
โI am treating the current weakness as an accumulation phase until proven otherwise by a confirmed second weekly close. The institutional floor is still solid at $94,000 (mining cost).
โMy Strategy: Use this "discount" to DCA into high-conviction positions. If the price closes the second week below the 50MA, the risk management plan changes drastically, and leverage is cut.
โ๐ Will $BTC manage to close this week ABOVE the 50MA?
โ#๏ธโฃ Hashtags
โ#Bitcoin #BTC #50MA #DiscountZone #Foreheadburns
