Bitcoin’s 50-Day Moving Average Hits New High Amid Signs of Cooling Momentum

Bitcoin’s widely followed 50-day simple moving average (SMA) has reached a record high, surpassing the six-figure mark for the first time, signaling a broadly bullish outlook for the world’s largest cryptocurrency. However, a narrowing gap between the current spot price and this average suggests that momentum may be fading, raising the possibility of a correction.

According to TradingView data, the 50-day SMA recently climbed above $104,000, eclipsing its previous peak near $99,300 recorded at the end of January. This moving average serves as a key technical indicator for investors, often used to identify underlying market trends and potential zones of support or resistance.

The new milestone follows Bitcoin’s all-time high spot price of over $111,000 reached on May 22, a rally largely fueled by strong inflows into spot exchange-traded funds (ETFs) and a general rotation away from traditional U.S. assets.

Since hitting that peak, Bitcoin’s price has retraced to around $105,000, causing the spread between the spot price and the 50-day SMA to narrow—a classic sign that buying pressure is weakening and that a pullback may be on the horizon. Analysts note that a price correction of at least 10% is possible if this trend continues.

Supporting this cautious outlook, on-chain data reveals increased profit-taking behavior among holders, aligning with the technical signals from the SMA spread.

The chart’s lower pane, which tracks the difference between the spot price and the 50-day SMA, shows that while the spread remains positive, it has been steadily shrinking since May 22. Historically, rising positive values in this spread indicate strengthening upward momentum, while declining or negative values point to weakening trends.

If a correction occurs, the 50-day SMA—currently near $100,295—is expected to serve as a critical support level.

A comparable pattern emerged last December, marking the exhaustion of the uptrend just above $100,000. At that time, the spread turned negative by February, foreshadowing a prolonged sell-off that saw Bitcoin’s price fall to roughly $75,000 over several weeks.