On Monday, the entire crypto complex was down more than $200 billion, and bitcoin was recording substantial losses, exposing a potential bullish accumulation in the charts for the digital asset.
According to the latest information, bitcoin was more than 8% lower at about $44,376.60. Besides, it lost around 17% from its initial peak at the beginning of September. A recent rise for bitcoin played an important role in putting the asset on the edge of a golden cross. There the 50-day moving average passes over its longer-term moving average (200-day).
However, the current pullback in crypto might undercut actual momentum for the digital asset. A death cross (when the 50-day drops below the long-term average) in bitcoin happened at the end of July when bitcoin started to move higher firmly.
Besides all of these movements, we can not say that Crosses are fundamentally significant market-timing indicators. They can help an asset to have a perspective, but they are just well telegraphed.
On Monday, chief market analyst at AvaTrade, Naeem Aslam, wrote in a note about Ethereum and Bitcoin. He said that these assets started the week with an enormous bullish signal. This signal meant that traders were focused mainly on the golden cross, which seemed to have lost its glory.
According to the data from CoinMarketCap.com, the fall in crypto cut more than $215 billion from the crypto market. These moves also follow as futures for the Dow Jones Industrial Average continued declining. It resulted from investors worried about potential market transmission from troubled Evergrande.
- DJIA, -0.49%
- YM00, -1.66%,
- the S&P 500 index SPX, -0.92%
- ES00, -1.52%
- the Nasdaq-100 NQ00, -1.53%
- COMP, -0.92%
Aslam also wrote that Crypto traders would discover that Bitcoin price touched the 45K price level one day. In his opinion, the fall in price represents its resistance to its upward momentum.