As of early Monday, over $370 billion had been erased from the market capitalization of all crypto assets over 24 hours, with Bitcoin experiencing its greatest single-day drop in three years. Much of the sell-off was linked to a broader market rout, with equities falling around the world.
A death cross occurs when a short-term moving average crosses below a long-term moving average, typically signaling potential bearish momentum.
In Bitcoin’s case, this pattern has emerged on the four-hour chart as the 50-hour moving average has crossed below the 200-hour moving average, an indication that many market analysts view as a bearish signal.
At the time of writing, Bitcoin was up 9% in the last 24 hours to $54,851, according to CoinMarketCap data.
On-chain analytics firm IntoTheBlock highlighted key levels to watch as the Bitcoin price shows signs of recovery.
According to IntoTheBlock, on the upside, resistance is fairly distributed, but two price levels with notable historic volume stand out, which are $55,500 and $60,500.
On the other hand, if declines continue, a significant demand level is concentrated below $50,000 with strong support anticipated around $47,500.
Meanwhile, Bitcoin wallets holding between 1,000 and 10,000 BTC showed confidence during the recent dip, consistently increasing their holdings as prices fell. On the other hand, wallets with less than 1 BTC showed weak hands, with the most substantial decrease in holdings during yesterday’s market downturn.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
