Bitcoin's 50-day simple moving average (SMA) has hit a record high, tracking at $104,909.52, signaling a strong bullish trend for the leading cryptocurrency. This significant high marks the first time the SMA has surpassed six figures, following a peak price of over $111,000 on May 22. While the SMA increase aligns with optimistic market sentiment, a crucial factor to consider is the narrowing gap between Bitcoin's current price and this average. Analysts view the SMA as an important indicator for identifying market trends, framing potential zones of demand and supply.
Despite the recent highs, the spread between Bitcoin's price and its 50-day average has shrunk, suggesting a possible price correction could be on the horizon. Historically, such signals have preceded price pullbacks of at least 10%. As of now, Bitcoin's price stands at $105,000, reducing the room for further increases. Market analysts have noticed weakened buying momentum, attributed to increased profit-taking by holders. The behavior indicated by the shrinking gap is corroborated by on-chain data, reflecting a potential plateau in momentum.
The current scenario may echo earlier patterns observed through December, suggesting that if a correction occurs, it might find support at the 50-day SMA, which currently sits at $100,295. The spread’s position—while still positive—has shown a downturn since the May peak, pointing towards diminishing bullish momentum. It's essential for investors to keep an eye on these market indicators, as the trend suggests that a price correction could be near.
Despite the recent highs, the spread between Bitcoin's price and its 50-day average has shrunk, suggesting a possible price correction could be on the horizon. Historically, such signals have preceded price pullbacks of at least 10%. As of now, Bitcoin's price stands at $105,000, reducing the room for further increases. Market analysts have noticed weakened buying momentum, attributed to increased profit-taking by holders. The behavior indicated by the shrinking gap is corroborated by on-chain data, reflecting a potential plateau in momentum.
The current scenario may echo earlier patterns observed through December, suggesting that if a correction occurs, it might find support at the 50-day SMA, which currently sits at $100,295. The spread’s position—while still positive—has shown a downturn since the May peak, pointing towards diminishing bullish momentum. It's essential for investors to keep an eye on these market indicators, as the trend suggests that a price correction could be near.
