Insights from CoinDesk analyst and Chartered Market Technician Omkar Godbole indicate that Bitcoin has recently retraced to the 50-day Simple Moving Average (SMA), a technical level that has historically been a key support level for this month. This pullback to the 50-day SMA is crucial as it provides bulls with a potential launching pad to solidify the recent upward trend.
However, failing to hold this support level could intensify selling pressure and may even push Bitcoin down to the psychological threshold of $100,000. Current market dynamics suggest a bearish trend for Bitcoin, with the rebound strength weakening during the recent test of the 50-day moving average. Notably, the initial rebound on June 5 briefly broke above $10,000, while the subsequent rebound on June 17 was more muted.
Additionally, the doji pattern that emerged over the past week suggests that bullish momentum near the $100,000 mark is waning. For Bitcoin to regain short-term bullish momentum, it must break above the critical resistance level of $110,000 with strong trading volume, highlighting the importance of volume-driven price movements in confirming trend reversals.
