U.Today – (BTC), the largest cryptocurrency by market capitalization, has shown a “death cross” on its short-term charts. This comes after a massive sell-off in the cryptocurrency market, with Bitcoin falling to a low of $49,050 during yesterday’s trading session.
Early Monday, more than $370 billion was wiped from the market capitalization of all cryptoassets in 24 hours, with Bitcoin experiencing its biggest one-day decline in three years. Much of the sell-off was tied to a broader market sell-off, with stocks falling across the board.
A death cross occurs when a short-term moving average crosses over a longer-term moving average, which is typically a signal of a potential downtrend.
In Bitcoin’s case, the pattern appeared on the four-hour chart when the 50-hour moving average crossed above the 200-hour moving average, which many market analysts consider a bearish signal.
The cryptocurrency market is regaining strength
Cryptocurrencies clawed back some of the previous day’s losses on Tuesday. Bitcoin regained ground after falling to a six-month low on Monday in the first major test of recently launched cryptocurrency exchange-traded funds.
At the time of writing, bitcoin’s value has risen 9% in the past 24 hours to $54,851, according to CoinMarketCap data.
On-chain analytics firm IntoTheBlock has highlighted key levels to watch out for as the bitcoin price starts to show signs of recovery.
According to IntoTheBlock, on the upside, resistance is evenly distributed, but two price levels with significant historical volume stand out, i.e. $55,500 and $60,500.
On the other hand, if the declines continue, significant demand will be concentrated below $50,000, with forceful support expected at around $47,500.
Meanwhile, Bitcoin wallets holding between 1,000 and 10,000 BTC have shown confidence during the recent decline, steadily increasing their holdings as prices have fallen. On the other hand, wallets holding less than 1 BTC have shown delicate hands, with the most significant decline in holdings coming during yesterday’s market decline.
