Bitcoin’s 50-Day Average Hits All-Time High, But Momentum Slows

Bitcoin’s 50-day simple moving average (SMA) has reached an all-time high, crossing into six-figure territory for the first time. This milestone highlights continued bullish sentiment in the broader market. However, a closer look reveals warning signs that could point to an upcoming correction.

While the 50-day SMA now stands above $100,000 — breaking the previous high of roughly $99,300 recorded in January — the gap between the current spot price and the moving average is shrinking. Bitcoin recently pulled back from its all-time high of over $111,000 on May 22 to around $105,000, narrowing the spread over the SMA and suggesting weakening upside momentum.

Historically, a narrowing or negative price-to-SMA spread has signaled potential market fatigue. That’s exactly what analysts are watching now. Similar conditions occurred in December, just before the market reversed and Bitcoin fell to $75,000 by February.

Adding to the cautious outlook, on-chain data shows increased profit-taking by holders, further aligning with signals of cooling demand. If a correction does occur, the 50-day SMA around $100,295 could act as a key support level.

Though the long-term outlook remains optimistic, short-term momentum appears to be fading — a reminder that even in bull markets, corrections are part of the cycle.