If Bitcoin Starts Closing Below the 50-Day SMA It May Mean Deeper Pullback Ahead

[Rakin343]

Bitcoin fell sharply on Sunday, dipping well below the 50-day simple moving average (SMA) support for the first time in six months.
While the decline looks typical of a bull market correction, it could be extended further if prices find acceptance under the 50-day SMA, according to one analyst.
“The loss of [bullish] momentum is only short-term in nature, but we would view consecutive closes below the 50-day SMA as a reason to move to the sidelines,” Katie Stockton, technical analyst and managing partner of Fairlead Strategies, told CoinDesk in an email.
Bitcoin is currently trading near $55,150 on Coinbase, having dropped by roughly $8,000 to $52,148 during the Asian daylight hours. The 50-day SMA is located at $56,283.
According to Katie, back-to-back daily closes (23:59 UTC) below the SMA support would open the doors for the former resistance-turned-support near $42,000 (January high).
The 50-day SMA is one of the most widely-tracked averages along with the 100- and 200-day SMAs. As such, violation of these SMA supports often invites stronger chart-driven selling. Source