Bitcoin has broken below a critical support zone, disrupting a long-standing bullish pattern and signaling a shift in market behavior.

BTC, trading around $90,091.77, has now followed a “Strategy (MSTR)-style” breakdown, slipping beneath a level that traders had treated as a dependable bounce area. The cryptocurrency dropped nearly 10% in the week ending Nov. 16, forming a large red weekly candle that closed decisively under the 50-week simple moving average (SMA), per TradingView data.

This move marks a clear invalidation of a major demand zone and suggests a transition away from an established bullish structure. With that floor now compromised, market sentiment may tilt more cautious, increasing the likelihood of extended downside. Traders who once viewed dips as buying opportunities may begin shifting to a “sell the rip” mindset instead.

The 50-week SMA had served as a dynamic support since early 2023, repeatedly catching price pullbacks and fueling fresh rallies to record highs as buyers stepped in with confidence at the level.

A look back at Strategy (MSTR) shows a similar pattern: its break below the long-held 50-week SMA led to an erosion of market confidence and a sustained sell-off. CoinDesk previously highlighted the bearish implications of MSTR’s breakdown, noting that Bitcoin could experience a comparable reaction — a scenario now unfolding.

With the 50-week SMA no longer acting as support, the former floor has flipped into resistance. Any recovery attempt is likely to encounter selling pressure near the region around $102,868. Analysts say Bitcoin would need several consecutive weekly closes above this level to re-establish a constructive bullish outlook.

MSTR, the largest publicly traded corporate holder of BTC, slipped below its own 50-week SMA in September and has since extended its decline to around $200 — the lowest level since October 2024.