After the leading cryptocurrency Bitcoin rose above $ 30,000, while investors were waiting for BTC to rise to higher levels, BTC dropped to $ 27,000 with a sudden drop.
While investors were wondering when the rise will begin in Bitcoin, analysts pointed out that the 50-day simple moving average (SMA) ($27,185) in BTC is important.
According to the report of Coindesk, some analysts said that to find clues about Bitcoin's possible next move, one should focus on the 50-day SMA, a significant average of BTC price.
Touching on the decline in BTC and the importance of the 50-day SMA in this context, FxPro senior analyst Alex Kuptsikevich stated that a potential break of the 50-day SMA could force the upward momentum of BTC.
“The recent drop in Bitcoin has erased the previous growth momentum and now the 50-day SMA support, the strength of the medium-term uptrend, is being tested.
A break below the 50-day SMA support could question the strength of the bull market, while a consolidation below $26,600 could signal a deeper decline.
Another analyst who thinks the 50-day SMA is an important benchmark for BTC's future is Katie Stockton, the founder of Fairlead Strategies.
Pointing out that the SMA support is temporary in a note to customers, Stockton stated that a break below this support may soon lead to a deeper decline.
“Bitcoin needs to form a short pause before it starts falling towards key support, $25,200, in the face of short-term oversold conditions.
The level at which this pause should occur is the 50-day SMA. And BTC is testing the 50-day SMA before it starts to drop towards $25,200.”
As analysts have pointed out, the 50-day SMA is the key point for the prediction of BTC's potential next move.
Analysts added that a possible break below the 50-day SMA could bring Bitcoin price to $25,200, while the protection of the 50-day SMA could herald a broader bullish outlook and a new uptrend.
The 50-Day SMA coincides with the levels of $ 27,185 as of now.
*Not investment advice.
