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BTCUSD goes parabolic after claiming 50-day SMA
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Jumps above 50,000 to a fresh more than 2-year peak
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Momentum indicators look extremely overbought
BTCUSD (Bitcoin) has been experiencing a steep advance following its break above the 50-day simple moving average (SMA) on February 7. Within a week, the price violated its two-year peak of 49,051 and surged above the 50,000 psychological mark, but traders should be cautious as the advance is significantly overstretched.
If the rally resumes, Bitcoin could test the November 2021 support zones of 53,300 and 55,500. Conquering the latter, the bulls might attack 59,440, which served as both support and resistance in the November-December 2021 period. Even higher, the December 2021 resistance of 64,300 might curb further upside attempts.
On the flipside, should the advance falter, the previous peaks of 49,051 and 44,785 could provide initial support. A violation of the latter could open the door for the inside swing low of 41,420. Failing to halt there, the price may slide towards the 2024 bottom of 38,460.
In brief, BTCUSD’s advance has accelerated after the profound break above the 50-day simple moving average (SMA), with the price posting a more than two-year high. However, the short-term oscillators are starting to warn of an overstretched advance, thus an impending pullback might be on the cards.
