Bitcoin Charts a Sad Face: $61K vs. the 50-Day Moving Average 📉

Bitcoin is trading roughly 20% below its 50-day simple moving average, a technical condition one ETF portfolio manager describes as a "broken chart" as the largest cryptocurrency hovers near $61,400. The 50-day simple moving average stands at $75,020, according to CoinDesk data.

David Nicholas, CEO and Founder of XFUNDs by Nicholas Wealth and portfolio manager of several actively managed ETFs including BLOX, which maintains bitcoin as a core holding, said the deviation from the 50-day SMA has prompted him to maintain defensive hedges while monitoring for signs of stabilization. He noted that oversold conditions could fuel a short-term bounce, but that at least a 20% recovery is needed to turn bullish on BTC.

Even a 20% recovery from current levels, however, would still leave price action well below the 200-day moving average, according to Nicholas. Other traders have cited levels ranging from $68,000 to $80,000 as thresholds that would need to be breached to revive a sustained bullish trend.

Nicholas's outlook comes as bitcoin continues to navigate headwinds ranging from Federal Reserve rate policy to broader risk-off sentiment in digital asset markets. The price referenced reflects market levels as of 8:18 AM ET, per CoinDesk data.

The $BTC market structure remains under scrutiny as participants weigh whether the current deviation from key long-term averages represents a cyclical reset or a deeper technical breakdown.