Analyst: Bitcoin's 50-day SMA is at a critical position, a substantial breakout above $110,000 is needed to revive the short-term bullish outlook
ChainCatcher news, CoinDesk analyst and chartered market technician Omkar Godbole stated that the current Bitcoin price has fallen back to the 50-day simple moving average (SMA), which has provided support and pushed the price rebound twice this month.
Therefore, this retest of the moving average provides bulls with an opportunity to establish a trend—allowing the 50-day average to serve as a springboard for a new round of increases. Conversely, if the 50-day average support fails, it could trigger stronger selling pressure, leading to a price drop below the $100,000 mark.
From the market perspective, bearish forces seem to be prevailing. The strength of the recent rebound from the 50-day average has gradually weakened: during the first test of the average on June 5, Bitcoin rebounded over $10,000 from $100,500; while during the second test on June 17, the rebound was only from $103,000 to $109,000.
The doji candlestick formed over the past week also indicates that bullish momentum above $100,000 has shown signs of fatigue. To revive the short-term bullish outlook, Bitcoin needs to break through the key resistance level of $110,000 with increased volume.
