Interested in defending Bitcoin’s 50-day SMA … Challenging bullish mood in case of collapse

2023-04-25 13:44:00

[뉴욕 = 장도선 특파원] As the bearish movement of Bitcoin continues, whether to defend the 50-day Simple Moving Average (SMA) is emerging as a major concern in the market.

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 could start a new uptrend consistent with the broader bullish outlook, CoinDesk predicts.

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