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The total crypto complex was down more than $ 200 billion on Monday, and bitcoin was posting strong losses, jeopardizing a potential bullish formation in the charts for the world’s No.1 digital asset.
At last check bitcoin BTCUSD,
was more than 7% lower at around $ 44,376.50, and 16% from its high in early September. A recent uptrend in bitcoin had put the asset on the brink of a golden cross, where the 50-day moving average surpasses its longer-term 200-day moving average.
However, the recent decline in bitcoin, and crypto more broadly, could undermine the positive dynamics of digital assets. A death cross in bitcoin, when 50 days drops below the long-term average, occurred in late July (see chart attached), bitcoin has been rising steadily lately.
FactSet
Crossovers aren’t necessarily good indicators of market timing, as they are well wired, but they can help put an asset’s movement into perspective.
“Bitcoin and Ethereum started the week back and the massive bullish signal traders were focusing on, the golden cross, appears to have lost its luster,” Naeem Aslam, chief market analyst at AvaTrade, wrote in a note from Monday.
The crypto collapse reduced the crypto market by $ 214 billion, according to data from CoinMarketCap.com. Movements also show up as futures contracts for the Dow Jones Industrial Average DJIA,
YM00,
those of the S&P 500 SPX index,
ES00,
and the Nasdaq-100 NQ00,
COMP,
were down as investors worried about potential market contagion from struggling Chinese real estate developer Evergrande 3333,
CoinMarketCap.com
“Crypto traders are definitely going to wake up with a rough day and it is likely that the price of Bitcoin may actually touch the starting 40K price level now, as the price has failed to maintain its momentum at the rise, “Aslam wrote.
Elsewhere in crypto, Ether ETHUSD,
on the Ethereum blockchain, changed hands at $ 3,050.30, down nearly 10% on Monday and more than 20% from its recent peak earlier this month.
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