- Bitcoin (BTC) prices soared to an intraday peak of $62,790 during the Friday morning Asian trading session.
- This price movement added 9.5% to the value of BTC over the past 12 hours, ascending from its intraday low of $57,000 late on August 8.
- BTC has now rebounded approximately 25% from its low of $49,800 on Monday, driven by substantial dip buying, and is on track to re-enter its range-bound channel and accumulation zone.
Bitcoin surges above $62,000 in Asian trading, showing strong recovery signs and reversing the death cross trend.
Reversal of the Death Cross
In a significant development, Bitcoin has averted the much-dreaded death cross, a technical signal where a short-term moving average drops below a long-term moving average. According to analyst and ITC Crypto founder Benjamin Cowen, Bitcoin has defied the bearish outlook commonly associated with this pattern.
Historical Context on Death Cross
In 2023, BTC began a rally immediately after experiencing a death cross, managing to surpass its 50-day simple moving average (SMA) and using it as support to drive higher. However, BTC struggled to maintain upward momentum during the 2022 death cross, leading to a subsequent decline.
Current Market Outlook
Bitcoin’s current journey suggests it must maintain a position above the support level of $62,000 and continue to hold its 50-day SMA as support to ensure sustainable growth. Several analysts believe the true test lies ahead, with potential future death crosses posing more significant challenges.
Overall Crypto Market Gains
On a broader spectrum, total cryptocurrency market capitalization has surged by 6% in a day, reaching $2.2 trillion. Yet, the market needs to reclaim the $2.5 trillion mark to fully negate this week’s earlier losses. While Bitcoin leads this recovery, Ethereum (ETH) has also shown robust performance, rising 9% and peaking at $2,700 during the Asian session before slightly settling at $2,630.
Altcoin Performance
Alongside BTC and ETH, several altcoins have posted notable gains. Near Protocol (NEAR), Pepe (PEPE), Stacks (STX), and Bittensor (TAO) have all achieved double-digit growth, with Sui (SUI) experiencing an impressive 32% surge. This broader positive sentiment suggests a recovering market, although its durability remains under scrutiny.
Conclusion
To sum up, Bitcoin’s remarkable recovery and its ability to avert the death cross are promising indicators. However, maintaining these gains and holding above critical support levels will be essential for continued progress. As the market shows broader signs of recovery, stakeholders remain cautiously optimistic about the future trajectory of cryptocurrencies.
