HomeContributorsTechnical AnalysisBTCUSD Retreats Below Ascending 50-day SMA

BTCUSD Retreats Below Ascending 50-day SMA

BTCUSD (Bitcoin) has been rangebound in the last few daily sessions following a mild pullback from its recent highs. Moreover, the king of cryptos has been gradually forming a structure of lower highs similar to the one observed during the April-June period, with the decline beneath the 50-day simple moving average (SMA) further darkening the outlook.

The momentum indicators currently suggest that the near-term risks are tilted to the downside. Specifically, the RSI is descending below the 50-neutral threshold, while the stochastics remain flat after a rebound from the oversold territory.

Should the bears try to push the price lower, the recent support of 28,550 could act as the first line of defence. If that barricade fails, the spotlight could turn to the April bottom of 27,000 before the May low of 25,785 gets tested. Further declines might then cease at the June low of 24,750.

On the flipside, if the price regains tractions and edges back higher, the $30,000 psychological mark could prove to be the first barricade for buyers to claim. A violation of that zone may open the door for the April peak of 31,064. Surpassing that region, the price could then challenge the 14-month high of 31,827.

Overall, BTCUSD has been rangebound in the last few sessions amid a broader short-term bearish pattern. For the bulls to regain confidence, the price needs to jump back above the 50-day SMA.

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