Bitcoin Faces Crucial Test at 50-Day Moving Average

According to Odaily, CoinDesk analyst and Chartered Market Technician Omkar Godbole has noted that Bitcoin's price has returned to the 50-day simple moving average (SMA), which has twice provided support and driven price rebounds this month. This latest test of the SMA offers bulls an opportunity to establish a trend, potentially using the 50-day average as a springboard for a new rally. Conversely, if the support at the 50-day SMA fails, it could trigger stronger selling pressure, leading to a drop below the $100,000 mark.
Market analysis suggests that bearish forces are currently dominant. The strength of recent rebounds from the 50-day SMA has been diminishing. On June 5, Bitcoin rebounded over $10,000 from $100,500 after testing the SMA for the first time. However, during the second test on June 17, the rebound was only from $103,000 to $109,000. A doji candlestick pattern formed over the past week also indicates waning bullish momentum above $100,000.
To revive short-term bullish prospects, Bitcoin needs to break through the key resistance level at $110,000 with increased trading volume.