Bitcoin (BTC) Forms Death Cross Amid Market Decline

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has recently displayed a “death cross” on its short-term charts. This development follows a significant sell-off in the cryptocurrency market, with Bitcoin dropping to a low of $49,050 during the previous trading session.

As of early Monday, the total market capitalization of all cryptocurrencies saw a decrease of over $370 billion within 24 hours, marking Bitcoin’s most substantial single-day drop in three years. This sell-off appears to be connected to a broader decline in global equities.

A death cross occurs when a short-term moving average falls below a long-term moving average, generally indicating potential bearish momentum. In Bitcoin’s case, this pattern has manifested on the four-hour chart, where the 50-hour moving average has dipped below the 200-hour moving average. Many market analysts interpret this as a bearish signal.

### Crypto Market Recovers

However, on Tuesday, the cryptocurrency market managed to recover some of the losses from the previous day. Bitcoin made a notable comeback after reaching its lowest level in six months on Monday, coinciding with the initial assessment of recently launched cryptocurrency exchange-traded funds.

At the time of reporting, Bitcoin had increased by 9% within the last 24 hours, rising to $54,851, based on market data.

On-chain analytics firm IntoTheBlock pointed out essential levels to monitor as Bitcoin’s price exhibits signs of recovery. They noted that while resistance levels are fairly distributed, two price points with significant historical volume stand out: $55,500 and $60,500. Conversely, if prices continue to decline, a notable demand level is observed below $50,000, with strong support expected around $47,500.

Interestingly, Bitcoin wallets holding between 1,000 and 10,000 BTC showed confidence amid the recent downturn, as they continued to increase their holdings. In contrast, wallets with less than 1 BTC demonstrated weaker hands, experiencing the most significant decline in holdings during the recent market turbulence.