After a tough weekend that saw Bitcoin price hit a notable sell-off, the leading cryptocurrency has rebounded and passed the $ 50,000 mark. At the time of writing, BTC is changing hands at $ 51,080.
Bitcoin price is stabilizing above its 200-day moving average
Now that the prominent cryptocurrency has risen above that level, technical analysts and market watchers are watching and waiting to see if it builds support there. BTC rebounded over $ 50,000 after breaking that price, the top cryptocurrency rebounded to $ 50,580 before falling slightly by $ 49,970.
“Bitcoin bounced back to $ 50.1,000 on Monday and whale traders fell to perfection. Starting with dumping up to $ 43.5,000 in addresses with 100-10,000 BTC, another 67,000 BTC has accumulated after the same amount was dumped before the halving, “Santiment said.
Bitcoin was trading above its 200-day moving average (currently $ 46,386), suggesting that selling pressures may ease in the short term. Analysts point out that excessive leverage in the Bitcoin futures market contributed to the widespread sell-off. And despite the short-term upside potential, some analysts remain cautious about Bitcoin’s price development over the next few weeks.
BTC is ready for a short-term rally, although the upward trend towards the $ 55,000- $ 60,000 resistance area appears limited. Long term, the weekly momentum indicators have turned negative for the first time since April before a brief crypto bear market emerges. The trading volume on the large centralized exchanges is even lower than it was a day ago. Ether rose more than 5% to $ 4,355.
Meanwhile, Polygon (MATIC) has gained almost 20% in the last 24 hours. This is because a group of venture capitalists including Sequoia Cash India and Steadview Money are in talks to support the Ethereum Polygon scaling network with an investment of $ 50 million to $ 150 million. The investment should take the form of a MATIC purchase.
Elsewhere, Decentraland (MANA), the top ranked Metaverse asset, has fallen 25% in the past seven days. The decline in MANA was followed by Axie Infinity’s AXS, which has fallen 23% in the past seven days. The total crypto market cap is $ 2,380 trillion and the dominance of bitcoin is 40.5%.
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