Bitcoin Faces Downward Pressure: Strategic Investment Insights and Market Analysis – 2025-11-07

Market Analysis

Bitcoin has clearly lost momentum after reaching its peak near 124,000. Despite the recent interest rate cut by the Federal Reserve, the market shows little enthusiasm. The current weakness, along with technical indicators, suggests that a cautious approach is warranted.

Over the past five days, Bitcoin’s price has experienced significant volatility, heightening market uncertainty. On November 2nd, it opened at 110,098 and closed slightly higher at 110,540, but the following day saw a sharp decline to 106,583. This downward trend continued on November 4th, with the price dropping further to 101,497—a recent low. During this period, the Relative Strength Index (RSI) fell to 21.9, approaching oversold territory, while the Money Flow Index (MFI) dropped to 41.19, indicating weakening buying pressure. These technical signals point to subdued demand and increased selling pressure. Similarly, the Fear & Greed Index fell to 21, reflecting heightened fear and supporting a bearish outlook in the short term.

An analysis of Hull Moving Averages reveals all key averages turning downward, particularly the 7- and 14-day HMAs positioned near 100,255 and 103,130 respectively, with the current price trading below these levels. This trend suggests weakening momentum and a potential shift toward a bearish phase. The price is also hovering near the lower boundary of the Bollinger Bands, which acts as a support zone; however, an expansion of the bands could signal further downside risk. Support levels around S1 (between 99,950 and 101,335) are critical, especially due to the psychological significance of the 100,000 mark. Should this support break, the next major level to watch is S2 (ranging from 90,056 to 96,945), which could become a key area if the decline continues.

Despite the Federal Reserve’s rate cut, there has been no meaningful recovery in Bitcoin’s price, largely due to ongoing global financial uncertainties and cautious investor sentiment. Open interest has increased by 3.55%, and the financing rate remains positive, indicating some level of market engagement. Yet, the persistently low Fear & Greed Index and reduced trading volumes reveal that investor confidence remains fragile. Overall, technical and market indicators lean toward a bearish bias, though existing support levels may help stabilize prices temporarily.

In summary, Bitcoin’s current position appears uncertain and fragile, having failed to surpass its recent high near 124,000. The weakened RSI and MFI, downward-trending moving averages, and prevailing market fear all point toward a need for caution. If support levels hold, prices might stabilize; if not, further declines are possible. Investors should carefully monitor market fluctuations and base their decisions on thorough analysis.

Data Summary

• 1. Time:
  2025-11-07 – 00:00 UTC
• 2. Prices:
  Open: 103885.16000000
  High: 104200.00000000
  Low: 100300.95000000
  Close: 101346.04000000
• 8. Supports:
  S1: 101335.52000000 – 99950.77000000
  S2: 96945.63000000 – 90056.17000000
  S3: 89855.99000000 – 87325.59000000
  S4: 84474.7 – 83949.5
• 9. Resistances:
  R1: 104103.72000000 – 105500.00000000
  R2: 105857.99000000 – 106457.44000000
  R3: 108816.33000000 – 109450.07000000
  R4: 116789 – 117544
• 10. Psychological Support:
  100000.00000000
• 11. Psychological Resistance:
  110000.00000000
• 3. Last 5 days’ closing prices:
  2025-11-02: 110540.68000000
  2025-11-03: 106583.04000000
  2025-11-04: 101497.22000000
  2025-11-05: 103885.16000000
  2025-11-06: 101346.04000000
• 4. Volume:
  BTC: 25814.6214
  USD: $2641767846.3058
• 5. Number of trades:
  5755001
• 6. Indicators:
  RSI: 28.4400
  MFI: 33.8200
  BB Upper: 115714.24000000
  BB Lower: 101890.90000000
• 7. Moving Averages:
  SMA:
  7=106222.61000000
  14=109008.51000000
  21=108802.57000000
  30=110511.72000000
  50=112827.02000000
  100=113574.03000000
  200=109092.01000000

  EMA:

  7=105276.81000000
  14=107473.40000000
  21=108771.14000000
  30=109898.92000000
  50=111258.38000000
  100=111535.10000000
  200=107707.18000000

  HMA:

  7=100255.96000000
  14=103130.01000000
  21=105326.34000000
  30=107598.26000000
  50=107037.99000000
  100=111234.02000000
  200=114276.08000000
• 12. Funding Rate:
  0.0045%
• 13. Open Interest:
  83888.4840
• 14. Fear & Greed Index:
  27 (Fear)

Disclaimer: This market analysis is generated by AI based on historical BTC data and sentiment indicators. Use it as a reference, not financial advice.