Bitcoin, the pioneering cryptocurrency, has dropped below $75,000 for the first time since August, adding pressure to an already-weak crypto market. The drop comes after a sharp decline from the $80,000 level, raising a bigger question for traders.
Is Bitcoin entering another deeper correction, or could this setup mirror its 2023 recovery?
Bitcoin Falls Below $75K as Selling Grows
Bitcoin dropped roughly 6.4% from around $80,307 to nearly $74,800 on November 6 before recovering slightly toward $75,600. The fall came as technology, semiconductor, and AI stocks faced heavy selling, spreading pressure across global markets.
Another major trigger came from the latest US Initial Jobless Claims report. Initial claims unexpectedly fell to 189,000 against expectations of 197,000, showing continued strength in the US labor market.
The stronger-than-expected data reduced hopes for easier monetary policy, putting pressure on Bitcoin and other risk assets.
The sell-off also triggered heavy liquidations. According to CoinGlass, 111,345 traders were liquidated over 24 hours, with total losses reaching $427.18 million. Long positions accounted for nearly $327 million, or around 76.7% of the total.
Bitcoin Repeats 2023 Setup
Despite the drop, prominent crypto analyst Ash Crypto sees similarities between Bitcoin’s current weekly chart and its 2023 setup.
In 2023, Bitcoin traded between its weekly 50-week and 100-week moving averages before breaking above the range and starting a major rally. Now, BTC is again moving between these two averages after facing rejection near the 100-week moving average around $87,400.
Ash Crypto places the 50-week moving average near $75,500 as the first major support. The 200-week moving average around $67,800 is another level to watch if Bitcoin falls further.
The analyst also points to stronger buying demand below $75,000 compared with the previous low. He describes this as a positive difference in market demand and one of his strongest buy signals.
Can Bitcoin Reclaim $87,400?
Bitcoin needs to hold above $75,500 to keep the current chart setup intact. If buyers defend this level, the price could first test resistance near $82,000.
A stronger recovery above $82,000 could bring the 100-week moving average near $87,400 back into focus.
The weekly RSI is around 50, still above the usual bear-market zone. However, the Stochastic RSI is weakening, leaving room for another drop.