U.Today – (BTC), the largest cryptocurrency by market cap, has displayed a “death cross” on its short-term charts. This comes after a major sell-off in the cryptocurrency market, with Bitcoin falling to a low of $49,050 during yesterday’s trading session.
By early Monday, more than $370 billion of the market capitalization of all cryptoassets had been wiped out in 24 hours, with bitcoin experiencing its biggest single-day drop in three years. Much of the sell-off was linked to a broader market rout, with stocks falling across the world.
A death cross occurs when a short-term moving average crosses below a long-term moving average, which usually indicates potential bearish momentum.
In the case of Bitcoin, this pattern emerged on the four-hour chart when the 50-hour moving average crossed below the 200-hour moving average, an indication that many market analysts view as a bearish signal.
The cryptocurrency market is recovering
Cryptocurrencies on Tuesday recouped some of the previous day’s losses. Bitcoin is regaining ground after plunging to a six-month low on Monday during the first major test of recently launched cryptocurrency exchange-traded funds.
At the time of writing, Bitcoin was up 9% over the past 24 hours to $54,851, according to data from CoinMarketCap.
On-chain analytics firm IntoTheBlock has highlighted key levels to watch as Bitcoin price shows signs of recovery.
According to IntoTheBlock, on the upside, the resistance is fairly distributed, but two price levels with notable historical volume stand out, which are $55,500 and $60,500.
On the other hand, if the declines continue, a significant level of demand 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 drop, steadily increasing their holdings as prices fell. On the other hand, wallets holding less than 1 BTC showed weakness, with the most substantial decrease in holdings during yesterday’s market crash.
This article was originally published on U.Today
