Are Bitcoin and Ethereum on the Brink of Breakdown or Recovery? BTC Approaches 50W SMA While Ethereum Looks for Upside
The price of Bitcoin is at a crucial point as it approaches its 50-week simple moving average around $102,000. This threshold has acted as base level in previous market cycles. When it has failed in the past, the market experienced significant downturns.
Currently, BTC is trading near $101,500, reflecting a decline of about -2.4% in the last 24 hours. Despite this, it remains down -5.8% for the week.
The daily trading volume stands at approximately $61.7 billion, indicating stable engagement despite the recent decline.
Crypto market participants are closely monitoring this level. A sharp rebound could stabilize the market, while a downturn below this threshold might signal further weakness.
The long-term charts advise caution. Every time Bitcoin has dipped beneath its 50-week simple moving average (50W SMA), the market has faced severe losses.
Analyst Ali Martinez highlighted several instances. The trading market experienced drops of about 50% in 2011, 67% in 2014, 60% in 2018, and 66% in late 2021.
Bitcoin $BTC has seen an average 60% drop each time it has lost the 50W SMA as support.
Today, that would point to $40,000. https://t.co/LBYiDj0MBY pic.twitter.com/iVdxKesfAt
— Ali (@ali_charts) November 5, 2025
Even during the COVID downturn in 2020, Bitcoin suffered a decline of roughly 55% after breaching this level.
Considering this history, a decisive fall below $102,000 could pave the way to the $40,000 area, which many traders perceive as vital support for Bitcoin’s overall market structure.
Analyst Lennaert Snyder has also identified $102,000 as essential short-term support.
$BTC trading at crucial levels here.
It rejected the 4H $104,660 dropoff for now, I prefer to hold key $102,000 support to not lose the 4H uptrend.
Therefore $102,000 is interesting for longs after lower timeframe reversals.
"The" level to gain for Bitcoin is $107,100… pic.twitter.com/lkVFOqBaUm
— Lennaert Snyder (@LennaertSnyder) November 6, 2025
He remarked that the four-hour chart still displays an upward trajectory but cautioned that bulls must reclaim $107,100 to sustain that momentum.
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ETH Price Prediction: Is Ethereum Preparing for a Fresh Upside Phase?
ETH was trading at approximately $3,305 at the time of writing, down -2.9% in the last day.
A weekly chart published by the analyst illustrates the asset holding a significant technical point following its recent pullback.
The price rebounded near the 50-week moving average and the 0.618 Fibonacci level around $3,130, an area considered essential mid-cycle support.
The chart also shows Ethereum moving within a long-term ascending wedge, a formation that has dictated its trend since 2020.
$ETH very nice hold of support on the 50 WMA and the 0.618 Fib at $3130
Let's see a return to $4000 next and the worst can be behind $ETH. pic.twitter.com/4VPIIiUFNl
— The Long Investor (@TheLongInvest) November 6, 2025
The chart suggests that the market might have completed its corrective Phase 2 and could be gearing up for a more extensive upward movement.
The next significant challenge lies around $4,865, which represents the previous cycle peak. The analyst views this threshold as a pragmatic upside target.
Should the price continue to rise, this trend would align with a broader wave extension. In such a case, the 1.618 Fibonacci level near $8,800 becomes the next crucial area for potential gains.
A consistent increase in support levels and a distinct upward trendline bolster the optimistic outlook.
However, if Ethereum drops below $3,130, it could slide toward deeper price floor levels around $2,800. For now, momentum appears stable, despite recent fluctuations.
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What Prompted Bitmine Immersion Technologies to Acquire Over 40,000 Ethereum?
According to the on-chain analytics company Lookonchain, significant investors were active during the recent market dip.
Whales keep accumulating $ETH — over the past 3 days, many whales have collectively bought 394,682 $ETH($1.37B).https://t.co/RhDYQM0yl6 pic.twitter.com/3qMSojTSTu
— Lookonchain (@lookonchain) November 6, 2025
Data indicates that eight major wallets accumulated a total of 394,682 Ethereum, worth approximately $1.37 billion, over the last three days.
Their average purchase price was around $3,462. Lookonchain identified one buyer associated with Aave as the largest participant.
This digital wallet acquired 257,543 Ethereum, valued at about $896 million, making it the most aggressive buyer during the dip.
The second-largest purchaser was Bitmine Immersion Technologies, recognized as Ethereum’s most significant corporate holder. The company secured 40,719 ETH, valued nearly at $139.6 million.
OnChain Lens data reveals that Bitmine initially acquired 20,205 ETH from Coinbase and FalconX, followed by another 20,514 ETH from FalconX.
A newly created wallet received 20,514 $ETH worth $69.31M from #FalconX, and it likely belongs to #Bitmine.
In total, Bitmine (@BitMNR) has bought 40,719 $ETH worth $138.28M, in the past 6 hours.
Address: 0x243e02eaF194A757577e9A4EEAf63478b06F586f6 https://t.co/vjeUFUef2H pic.twitter.com/IkBnhTvQdv
— Onchain Lens (@OnchainLens) November 6, 2025
Data from Santiment indicates that short-term traders are under pressure. Those who have been active in the past 30 days are currently facing average unrealized losses of about 12.8%.
🥳 Ethereum has nearly scraped $3,500 again after threatening to fall below its $3,000 support just 20 hours ago. Traders active in the past 30 days show an average return of -12.8%, indicating there is still a severe level of pain and room to continue rising until it rises back… pic.twitter.com/BXCpuufAe5
— Santiment (@santimentfeed) November 5, 2025
Long-term traders are also slightly in the negative. Santiment reported that wallets active over the last year show an average return of –0.3%.
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The post Are Bitcoin and ETH Near Breakdown or Rebound? Bitcoin Tests 50W SMA as Ethereum Eyes Upside appeared first on 99Bitcoins.
