2023-04-25 13:44:00
Bitcoin pointed to $27,382, down 0.5% from 24 hours ago on CoinMarketCap at 9:36 am on the 25th, New York time. Bitcoin’s 50-day SMA currently sits at $27,244, according to CoinDesk.
FxPro Senior Market Analyst Alex Kupchikevich believes that the collapse of the 50-day SMA will challenge the market’s bullish mood.
“The market has erased previous growth momentum and is now testing the strength of a medium-term uptrend in the form of a 50-day moving average,” he said in an email. “A collapse of the 50-day moving average will call into question the strength of the bull market, and a consolidation below $26,600 is likely to be the prelude to a bigger pullback,” Kupchikevich predicted.
Source: CoinDesk/TradingView
According to CoinDesk, the 50-day SMA is one of the most widely tracked technology lines in both traditional and crypto markets. Crypto analysts track the upside/downside breakout of the 50-day SMA to identify changes in bullish and bearish trends.
If the 50-day SMA breaks, analysts’ next focus will be on the $25,200 support level. As can be seen on the weekly chart, $25,200 is the level that limited Bitcoin’s upward movement from August 2022 to February 2023.
Katie Stockton, founder and managing partner of Fairlead Strategies, believes that the 50-day SMA support line is likely to break quickly and pave the way for a deeper pullback in the near future.
“Bitcoin is testing the 50-day SMA,” she wrote in a client note the previous day. This is a small support level where short-term oversold conditions create a pause before (Bitcoin) falls back towards a key support line,” he explained.
However, if Bitcoin defends its 50-day SMA, it might start a new uptrend consistent with the broader bullish outlook, CoinDesk predicts.
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