The leading cryptocurrency, Bitcoin, has bounced back above its 200-day moving average after slumping as much as 22 percent on Saturday. Technical analysts say the next key level to watch would be its average price over the past 100 days if it starts to rally. Bitcoin finally managed to climb back above $50,000 as traders comb through the wreckage of this weekend’s flash crash.
Bitcoin plunged to as low as $42,000 last week.
The largest cryptocurrency by market capitalization witnessed a ‘flash crash’ on Saturday morning when its price slumped down to as low as $42,000 in a matter of a few hours. However, it did not stay there for long as it recovered quickly to trade around $47,000. Other major altcoins also dove this weekend amid a greater risk-off sentiment that also encompassed selloffs in many areas of the U.S. stock market. The fear of the new Omicron variant had left the market in red.
Bitcoin breaks above $50,000.
At the time of writing, bitcoin is trading just near $51,000. The original cryptocurrency has been up 4.58% in the last 24 hours. Meanwhile, Ether, which fell below its 100-day moving average during the selloff over the weekend, could find resistance around its average price over the last 50 days, though its support lies around $3,500. Still, it held up better relative to Bitcoin over the past few sessions. Bitcoin plunged 39 percent, while Ether fell 28 percent.
That crash was the biggest since a 31% collapse in bitcoin’s price on May 19. According to cryptocurrency analytics platform Coinglass, bitcoin’s market capitalization has fallen to about $932 billion from $1.25 trillion on Oct. 21.