Bitcoin Hits Key Demand Zone: 100-Week SMA Strategy Tested

Bitcoin Hits Key Demand Zone: 100-Week SMA Strategy Tested
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Introduction

Bitcoin has completed a significant downside move, sweeping sell-side liquidity and settling into a critical demand zone around the low-$70,000 region. This action places the historically reliable 100-week Simple Moving Average accumulation strategy under intense scrutiny. Market analysts are now focused on whether this level, representing a concentrated pocket of buy-side interest, will catalyze a meaningful bullish reaction or signal the beginning of a broader market reset.

Key Points

  • The 100-week SMA has historically marked optimal Bitcoin accumulation periods where risk-to-reward strongly favors long-term investors over short-term traders.
  • BTC Heatmap analysis confirmed the liquidity sweep was inevitable due to structural weakness and failure of local lows to hold, driving price to the low-$70,000 demand cluster.
  • Successful accumulation strategies involve either steady buying across a wide range ($55K-$75K) or waiting for confirmation when Bitcoin moves back above the 100-week SMA.

The 100-Week SMA: A Proven Accumulation Zone for Patient Investors

Crypto analyst Brett has emphasized that accumulating Bitcoin below its 100-week Simple Moving Average (SMA) has repeatedly proven to be one of the most reliable long-term investment strategies. According to his analysis, this zone has historically coincided with periods of maximum market pessimism, where the risk-to-reward ratio strongly favors patient, strategic buyers over short-term traders. Brett’s personal approach deliberately avoids the futile exercise of trying to pinpoint the exact market bottom. Instead, he advocates for steady accumulation by placing buy orders across a wide price range between $55,000 and $75,000, often supported by daily recurring purchases.

For more conservative investors, Brett points out that waiting for confirmation can be equally effective. Historical cycle analysis shows that buying after Bitcoin reclaims a position above the 100-week SMA has consistently delivered strong returns. A cornerstone of this thesis is the observation that Bitcoin has never fallen below the previous cycle’s 100-week SMA, reinforcing its importance as a structural, multi-cycle support level. Those who adhered to this disciplined strategy in prior market cycles are now positioned with significant long-term profits, underscoring the strategy’s historical validity.

Liquidity Sweep Confirms Path to Primary Demand

Independent analysis from Columbus, utilizing his BTC Heatmap, confirms the market has followed the exact trajectory previously mapped out. Columbus notes that the recent price action was driven by a failure of local lows to hold, combined with weak buying reactions. This structural weakness meant the substantial sell-side liquidity stacked below the market would inevitably act as a price magnet. The resulting continuation leg down was, therefore, a predictable outcome of these conditions.

Columbus’s current analysis highlights that Bitcoin is now trading directly within a cluster of heavier bids located in the low-$70,000 region. He identifies this specific zone as the first area where a “real reaction” is likely to occur, given its significant concentration of buy-side interest. For Columbus, the sweep into these deeper liquidity pockets was a necessary clearing event to reach this primary demand zone. With the anticipated downside move now fully played out and key liquidity targets hit, the analytical focus shifts entirely to the immediate response from buyers at this critical support level.

Market Awaits Buyer Response at Critical Juncture

The convergence of these analytical perspectives creates a clear focal point for the market. Bitcoin’s price is now situated at a technical crossroads, sitting on what is identified as heavy support within a proven historical accumulation zone. The sweeping of sell-side liquidity has removed a key overhang, setting the stage for a potential trend reversal. Both Brett and Columbus are now closely monitoring for a definitive reaction from stronger buyers to determine if this level will provide the foundation for the next leg of the trend.

The immediate future hinges on whether the concentration of bids in the low-$70,000 region can absorb selling pressure and catalyze sustained upward momentum. A failure to hold could signal a deeper market reset, while a strong reaction would validate the 100-week SMA zone as a resilient accumulation area once again. For long-term investors, this period represents a critical test of a key market structure principle, with the outcome likely to shape strategic positioning for the coming cycle.

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