Mon, May 29, 2023 @ 03:00 GMT
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BTCUSD Spikes Upwards after Hitting 50-day SMA

BTCUSD (Bitcoin) experienced a pullback after its 2023 surge peaked at the 10-month high of 31,064 in mid-April. However, the price has bounced back again after the 50-day simple moving average (SMA) curbed its retreat.

The momentum indicators currently suggest that buyers have re-gained the upper hand. Specifically, the RSI is pointing upwards above its 50-neutral mark, while the stochastic oscillator is ascending after posting a bullish cross in the 20-oversold zone.

Should the recent advance extend above the 30,000 psychological mark, the 10-month peak of 31,064 could be the first barrier for the bulls to clear. Surpassing that zone, the price may challenge 31,852, which is the 50.0% Fibonacci retracement of the 48,226-15,479 downtrend. A break above that zone could open the door for the 61.8% Fibo of 35,716.

Alternatively, if the price reverses lower again, the 38.2% Fibo of 27,988 might act as the first line of defence. Should that floor collapse, the bears could aim for the April low of 26,945. Failing to halt there, Bitcoin could descend towards the 23.6% Fibo of 23,207.

In brief, despite the recent downside correction from its multi-month high, Bitcoin has regained some ground after finding strong support at the 50-day SMA. For the technical picture to improve even further, the price must initially jump above the 30,000 psychological region before it posts a fresh higher high.
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