Bitcoin’s 50-Day Moving Average Sets New Record, But Momentum Is Cooling
Bitcoin’s 50-day simple moving average (SMA) has surged past $104,000, marking its highest level ever and crossing into six figures for the first time. This technical milestone reflects ongoing bullish sentiment, fueled by the recent rally that pushed Bitcoin’s spot price to over $111,000 in late May.
However, traders should note a warning sign: the gap between Bitcoin’s spot price and its 50-day SMA is steadily narrowing. After peaking on May 22, Bitcoin’s price has retreated to around $105,000, reducing the spread and signaling weakening momentum.
This compression often precedes corrections, raising the possibility of a pullback of 10% or more in the near term. Supporting this outlook, on-chain data shows increased profit-taking by investors.
The 50-day SMA, now near $100,295, will be a key support level if selling pressure intensifies.
A similar pattern unfolded last December when the spread between price and SMA shrank before turning negative, leading to a multiweek downturn that brought Bitcoin’s price down to $75,000.
Investors should watch this indicator closely to gauge whether the current uptrend can sustain itself or if a correction is looming.
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