Bitcoin News Today: Bitcoin's Pivotal Support Test: Reset or Reversal?

Bitcoin's recent slump below key support levels has reignited debates over whether the market is experiencing a temporary reset or a structural reversal. The cryptocurrency fell below its 2025 realized price of $103,227, leaving the average buyer with a 13% loss, according to Glassnode data. The decline mirrors the April 2025 correction, which saw prices drop from $109,000 to $76,000 over 80 days. However, the current downturn- now 43 days long -is only half as prolonged, raising questions about diverging market dynamics.

Technical indicators suggest growing bearish momentum. Bitcoin's breakdown from the 50-week exponential moving average (EMA)-a critical bullish support since 2024- has signaled major weakness. The price now faces a critical test at $92,900, a high-volume node support area. If buyers fail to defend this level, further declines toward $84,000–$85,500 could follow. Meanwhile, Ethereum and XRP are also under pressure. Ethereum trades below key moving averages, with its relative strength index (RSI) nearing oversold territory at 32, while XRP clings to $2.00 support amid a bearish MACD signal.

The selloff has coincided with record outflows from U.S. Bitcoin and Ethereum ETFs, which lost $3.79 billion in November alone. This exodus contrasts with inflows into altcoin ETFs like those tied to Solana (SOL), which have shown resilience despite broader market weakness according to analysis. Analysts attribute this divergence to shifting investor sentiment, with capital reallocating toward projects perceived as having stronger fundamentals or growth potential.

Historical patterns offer mixed signals. Glassnode data highlights that Bitcoin often dips below annual realized prices, which have historically served as entry points for buyers. For instance, during the April 2025 tariff-driven selloff, Bitcoin hit $76,000 but never breached the realized price of $70,000, eventually rebounding. However, the current environment lacks such a clear floor, with the realized price already breached and no immediate signs of a reversal.

Investor strategies are evolving to navigate the uncertainty. Dollar-cost averaging (DCA)-a tactic of consistent, periodic investments- has gained traction, with data showing it reduces emotional stress and improves recovery-phase returns compared to lump-sum entries. Diversification 2.0, which spreads capital across blockchain sectors like DeFi and real-world asset tokenization, is also being prioritized to mitigate sector-specific risks. Passive income generation through staking and yield farming has emerged as another tactic, with annual yields ranging from 5% to 25% depending on risk tolerance.

The market's next move hinges on whether buyers reassert control at key support levels. A sustained recovery above $100,212- the 50% Fibonacci retracement level -could reignite bullish momentum, but failure to reclaim the $107,482 high would signal continued weakness. For now, the crypto winter remains in focus, with survival strategies and technical catalysts shaping the path forward.