By Samuel Indyk
Investing.com – The price of Bitcoin remained relatively steady on Monday morning after a calm weekend that saw the world’s largest cryptocurrency hover around $43,000.
Bitcoin suffered some hefty losses at the start of the year, briefly dropping below $40,000 last week as the prospect of more aggressive tightening from the Federal Reserve and other central banks weighed on riskier assets.
The recent decline in Bitcoin saw a ‘death cross’ chart pattern formed where the 50-day moving average moved below the 200-day moving average. Typically, when this occurs it signals a bearish trend for the asset in question.
The last time a ‘death cross’ was observed in Bitcoin, the price dropped to its cycle low just four days after and remained subdued for around a month before starting to rise.
“Bitcoin's failure to cross $45,000 is a sign of its inherent weakness,” BitBull Capital CEO Joe DiPasquale told CoinDesk. “When Bitcoin experiences a sharp drop, investors and traders are looking for aggressive buying to confirm a bottom and reversal; however we haven't seen much of that since Bitcoin dropped below $40,000 briefly.”
Social Media
According to Cointrendz data, Bitcoin ($BTC) was the most mentioned cryptocurrency on Twitter during the last 24 hours with 6,632 tweets. Ethereum ($ETH) was the second most mentioned cryptocurrency with 4,067 tweets and Cardano ($ADA) third with 3,315 tweets.
Technical view
On the daily chart, a descending trendline is visible from the record high seen in November. A move above $44,500 would see Bitcoin trade back above the trendline.
The next level of resistance to the upside would be the $45,000 level before an approach to the 50-day moving average ($47,700) and the 200-day moving average ($48,550).
To the downside, the $40,000 level will likely act as major support before the 10th January low at $39,700.
At 13:13GMT, the price of Bitcoin was down 1.0% in the last 24 hours at $42,578.