Bitcoin Breaks Technical Record on 50-Day MA, Yet Warning Signs Linger

Bitcoin’s 50-Day Moving Average Hits New Heights, But Momentum Shows Signs of Slowing

Bitcoin’s 50-day simple moving average (SMA), a key indicator closely watched by traders, has just climbed to an all-time high above $104,000 — crossing the six-figure mark for the first time. This milestone reflects strong optimism around the cryptocurrency’s long-term trend. However, there’s a twist: the gap between Bitcoin’s current price and its 50-day SMA is shrinking, hinting that the rally may be losing steam.

Data from TradingView shows that the 50-day SMA recently surpassed its previous peak of around $99,300 set back in late January. Typically, this moving average acts as a gauge of market sentiment, highlighting zones where buying or selling pressure might increase.

Bitcoin’s spot price itself soared to a new record high above $111,000 on May 22, driven by significant inflows into spot ETFs and a broader move away from traditional U.S. investments. Since then, however, the price has eased back to roughly $105,000, narrowing the distance between the spot price and the 50-day average.

This tightening spread suggests that momentum is fading—buying interest is cooling off, which could open the door to a price correction of 10% or more.

On-chain metrics back up this view, showing more investors taking profits amid the recent gains.

Looking at the chart, the difference between Bitcoin’s price and the 50-day SMA, while still positive, has steadily decreased since the May peak. When this spread contracts like this, it often signals that the bullish momentum is slowing down.

If a pullback happens, traders will be watching the 50-day SMA, currently near $100,300, as a key support level.

A similar situation unfolded in December last year when the momentum waned just above $100,000. The spread eventually turned negative in February, leading to a several-week downturn that brought Bitcoin’s price down to around $75,000.