The cryptocurrency market is currently experiencing significant volatility, with the total market capitalization dropping by nearly 5% today. Both Bitcoin (BTC) and Ethereum (ETH) have seen substantial declines, contributing to over $1.18 billion in total liquidations. The majority of these liquidations, approximately $1.0 billion, originated from long positions.
Bitcoin (BTC) has fallen around 6% in the past 24 hours. Despite this bearish momentum, the BTC chart is indicating a potentially optimistic signal: a key moving average (MA) support level that has historically played a crucial role in driving Bitcoin's major rallies.
Testing Crucial 365-Day Moving Average Support
On the daily timeframe, Bitcoin (BTC) has once again descended to test its critical 365-day moving average. This level has previously served as a significant catalyst for major upward price movements.
In August 2024 and again in April 2025, Bitcoin experienced sharp corrections that brought its price down to this same 365-day MA region. On both occasions, these tests were followed by strong rebound rallies that propelled BTC to new local highs.
The current market situation appears to be mirroring historical patterns. The latest correction has pushed BTC's price into the $100,000 zone, where it is presently trading just below the 365-day MA, which is currently at $101,958. This price level also coincides with the lower boundary of a symmetrical broadening wedge formation, adding further technical support to this critical area.
Potential Outlook for Bitcoin
If the support provided by the 365-day moving average fractal holds true once more, Bitcoin (BTC) could be positioned for a significant recovery bounce from the $98,000 to $100,000 range. A rebound from this price area might signal the conclusion of the current deep correction phase and potentially pave the way for a move towards new all-time highs in the upcoming months.
However, this bullish fractal scenario is not guaranteed. A definitive breach below the $98,000 mark, coupled with a failure to reclaim the 365-day moving average, could initiate another wave of selling pressure. Such a development might extend the correction period before any substantial reversal can be observed.