- Bitcoin has reclaimed the 100-week SMA as support after rebounding to $89,000.
- A crypto analyst says that Bitcoin must hold this level for another leg up to be confirmed.
- Meanwhile, fresh data showing the Sharpe Ratio near zero suggests a potential market bottom.
Bitcoin has snapped back to $89,000 after a brutal 31% correction, and in the process, it has flipped a critical long-term level from resistance to support. Analysts say this exact setup triggered the 2023 bull reversal. Can BTC hold the line long enough to launch its next major breakout?
Data shared by an analyst show that Bitcoin has officially reclaimed the 100-week Simple Moving Average (SMA), a level that acted as a year-defining trigger for the 2023 bull rally.
In the new data, BTC has flipped this SMA (around $87,922) from heavy resistance into fresh support, a structure many analysts consider a classic macro reversal signal.
Will Bitcoin Recreate the 2023 Breakout Pattern?
Bitcoin recently sank to a 7-month low as retail capitulation accelerated following the October liquidation cascade.
The trend weakened further when BTC failed to close above the 50-week SMA, and experts at the time declared a fresh bearish phase.
However analyst Ash Crypto says that as long as Bitcoin maintains the reclaimed 100-week SMA, conditions align for a new upward leg. Even if volatility persists in the short term.
Meanwhile, crypto expert Anthony Pompliano emphasized that 25–35% BTC crashes have historically preceded major upside moves. In his view, Bitcoin may have already bottomed, though another shakeout isn’t off the table before the next breakout.
Data Points Toward an Imminent Bitcoin Reversal
While traders debate whether BTC’s bottom is in, new on-chain indicators are flashing early reversal signals.
A CryptoQuant analyst on Monday 24 November said that Bitcoin’s Sharpe Ratio, a key risk-adjusted performance metric, has collapsed to near zero.
Historically, BTC only hits this level during exhaustion phases marked by terrible short-term returns, right before trend reversals ignite.
The technical indicator’s drop to zero suggests Bitcoin has delivered poor returns, giving an opportunity for reward. This preceded reversals in 2019, 2020, and 2022, the analyst said.
If Bitcoin holds its newly reclaimed support, analysts say the conditions for a repeat of the 2023 breakout are already forming.
More Must-Reads:
- Robert Kiyosaki Rings Alarm: “Buy Bitcoin Before the Fallout”
- Ethereum Selloff Deepens – Whales Treat It As a Buying Feast
- Analysts Eye Fresh Bitcoin Rally as RSI Hits Critical Low
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What do you think?
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