Bitcoin Tests Critical Support Near $74,925

Following the election results, bitcoin climbed alongside stocks during a risk-on move. That rally reversed the next day. Stocks dropped on AI worries, and bitcoin lost all its post-election advances, slipping under its 100-day moving average and revisiting a swing area that has been relevant since August.

The swing zone serves as the immediate gauge for price action.

At the time of the analysis, bitcoin traded around $75,632, within the swing region spanning $74,925 to $76,052. The top boundary marks the 38.2% Fibonacci retracement of the rally from the July low. The bottom boundary is the level buyers must protect.

While bitcoin stays above $74,925, buyers have a support level they can use with tight risk management. A sustained move back above $76,052 would be the earliest indication of relief. Such a move would push the price out of the swing zone and offer buyers an opportunity to aim for the next upside target.

The next obstacles are the moving averages.

The 100-day moving average stands at $77,061. If bitcoin rises above that and holds, traders can turn their attention to the 100-hour and 200-hour moving averages at $77,631 and $77,795, respectively. These two hourly averages are near enough that they can be considered a single zone. Breaking through both would boost buyer confidence and pave the way to the next swing level around $79,146.

As long as the price has not reclaimed those levels, sellers maintain the technical advantage.

If the floor breaks, sellers will have additional space.

A sustained break below $74,925 shifts attention to the 200-day moving average at $73,190. Below that, the next objective is the 50% retracement of the July low rally at $72,554.

The key distinction is the action following a break. A quick drop below $74,925 followed by a recovery into the swing area would caution sellers of a potential failed breakout. If the price stays below the floor and any bounce stalls near $74,925, that indicates sellers are using the former support as resistance. Such behavior would bring the lower targets into focus.