Analysis: Bitcoin's 50-day moving average hit an all-time high, but the upward momentum weakened

PANews
PANews
BTC+0.49%

PANews reported on June 5 that according to CoinDesk, Bitcoin's 50-day simple moving average (SMA) has surpassed the previous high of about $99,300 on January 31, and is regarded by analysts as a market trend and potential supply and demand regional indicators. The new high of the average came weeks after the spot price peaked at $111,000 on May 22, and the rise may have been driven by strong inflows into cash ETFs and the transfer of funds from U.S. assets. However, the gains have since stalled, and the price has retreated to $105,000, narrowing the gap with the 50-day SMA, indicating a weakening of the upward momentum, reduced buying pressure, and a rising risk of a correction. This cautious approach coincides with an increase in profit-taking by holders in the on-chain data. While the spread remains positive, it has been narrowing since May 22, suggesting that the bullish momentum is waning. A potential pullback could find support at the 50-day simple moving average at $100,295. A similar pattern was observed last December, marking the exhaustion of the upward trend above $100,000. The spread eventually turned negative in February, triggering a multi-week sell-off to $75,000.

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