The 50-day simple moving average for Bitcoin price $BTC
, which is widely tracked, signals mixed.
This metric reached a new record level, rising to six figures for the first time, signaling a broader positive outlook for the leading cryptocurrency by market capitalization. However, at the same time, the gap between the price and the average has narrowed, indicating the possibility of a price correction, or at least a 10% decline.
The simple moving average has surpassed the previous peak of around $99,300 recorded on January 31, according to data source Trading,,View. Analysts track the average as a market trend indicator and a potential area of demand and supply.
The new average rise comes after weeks of the spot price reaching a record high exceeding $111,000 on May 22. This increase is likely driven by strong inflows into spot exchange-traded funds (ETFs) and a broader shift away from U.S. assets.
Gains have since stalled, with the price retreating to $105,000 and narrowing the gap above the 50-day simple moving average, indicating a decline in upward momentum. In other words, buying pressure has weakened, increasing the risk of a price drop.
The caution indicated by the gap between the price and the 50-day simple moving average aligns with series data showing an increase in profit-taking by holders.
The bottom part of the chart illustrates the difference between the spot price and the 50-day simple moving average. Positive and increasing values indicate strengthening upward momentum, while negative values indicate the opposite.
Although the gap is positive, it has been narrowing since May 22, indicating weakness in upward momentum. A potential correction may find support from the 50-day simple moving average at $100,295.
A similar pattern was observed during December, indicating the exhaustion of the upward trend above $100,000. The gap eventually turned negative in February, heralding a sell-off wave that lasted several weeks down to $75,000.
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