Bitcoin’s 50-Day Simple Moving Average Reaches Record High
The 50-day simple moving average (SMA) of Bitcoin has reached a record high, surpassing $100,000 for the first time. Key points include:
- The SMA peaked at approximately $99,300 on January 31, as per TradingView data.
- Despite the new high, the narrowing price-to-SMA spread indicates a potential price correction of at least 10%.
- Bitcoin's spot price recently retreated to $105,000, showing weakened buying pressure.
- Increased profit-taking by holders aligns with the caution suggested by the SMA spread.
- A potential support level during a correction could be the SMA at $100,295.
- A similar pattern previously indicated market exhaustion, leading to a drop to $75,000 in February.
