Cryptocurrency traders and analysts are keeping an eye on the 50-day Simple Moving Average (SMA) of Bitcoin (BTC) as the price of the cryptocurrency has come under pressure recently. 11% drop from the recent peak of $31,000 has put the focus on the key indicator. The 50-day SMA currently stands at $27,244, and a violation of this support would weaken the bullish market sentiment. In such case, a consolidation below $26,600 could be the warning sign of a deeper decline. Technical analysts have earlier noticed crossovers above/below the SMA to confirm bearish and bullish trend changes.

On Monday, sellers attempted to push the price below the 50-day SMA but were unsuccessful. If the breach happens, the bearish momentum could carry Bitcoin towards the next support at $25,200, which was the previous peak in August 2022 and February 2023, as seen in the weekly chart. According to Katie Stockton of Fairlead Strategies, if the SMA does not hold this support, a downtrend could resume. Oversold conditions, highlighted by the relative strength index and the stochastic, have been noted in the daily, weekly and hourly charts, which reinforce the bearish outlook.

On the other hand, if the 50-day SMA support manages to hold, a new upsurge in prices could kick in, as indicated by the positive weekly Moving Average Convergence/Divergence (MACD). The range of the bullish rally could extend as high as $35,900, which would be the next major resistance.

In conclusion, the coming days will determine whether the bitcoin price will again attempt to break the 50-day SMA support, or it will consolidate above that level and continue its march higher. Whichever way it goes, the focus on the SMA will remain, as one of the most commonly monitored technical lines in the traditional markets and in the crypto world.



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