The leading crypto currency recently shed off 36.5% of its value. Bitcoin fell drastically from its October 6 high at $126,272 (which is also the current all-time-high of the crypto) to the November 21 low at $80,527.

Upon hitting the November 21st low, however, further downward movement appears to have halted for a moment and bulls have somewhat reappeared. Let's examine why it appears the crypto has reached a strong support level where institutions are suddenly buying.

A closer inspection of recent price action indicates that Bitcoin could be reacting to a very strong Fibonacci retracement level. A Fibonacci retracement plotted from this year's low at $74,542 to this year's high at $126,356 leaves us with a 78.6% fib retracement at $85,591. This is, not surprisingly the level where buyers are suddenly reappearing in recent price action.

To further build upon this theory of institutional support at $74,542, let us extend this level to the left back in time to 2024 and observe what interesting facts it delivers.

An extention of the proposed support level at $74,356 back in time into 2024 reveals that indeed this is a real support level which has once supported price and took it to the all-time-high of $126,272. But before that, in early 2024, the same level was a resistance level but if was, towards the end of 2024 broken and flipped into support as shoe above

The level was tested once this year from which it shot up to the all-time-high of October 6th and now it appears the market has returned to this very level to test it's strength again.

Whether or not this level holds and sends the price up beyond the October 6th high at $126,272, or whether the level proves weak and breaks, remains to be seen. If the level holds, price could explode upward beyond $126, 272. But if the opposite happened and the level breaks to the downside, the crypto could plummet further