Bitcoin weekend session massacre left the entire cryptocurrency market bleeding. The retreat from highs above $60,000 toward $50,000 also affected other cryptocurrencies, including Ethereum, Ripple, and Cardano.
A renowned investor, Mike Novogratz, had last week warned that there could be some volatility in the wake of the Coinbase listing on Nasdaq. Following the hyped listing, the flagship cryptocurrency soared, hitting levels marginally above $65,000.
The precise reason for the crash is yet to be confirmed. However, some analysts say that it could be attributed to power outages experienced in China, which affected miners who mainly maintain the network. Similarly, some people say that the crash occurred due to the crackdown on Bitcoin and other cryptocurrencies.
At the time of writing, Bitcoin trades at $57,222 after bouncing off support close to $50,000. For now, bulls gaze upon $60,000 but are still far from the recently achieved all-time high of $65,050.
Meanwhile, short-term analysis shows that technical levels improve and propping Bitcoin for liftoff toward $60,000. The Moving Average Convergence Divergence (MACD) is in the negative region but gradually flipping bullish. For instance, the MACD line could soon cross above the signal line, further cementing the bullish action.
On the upside, a break above $58,000 is needed to assure investors that $60,000 is within reach. Moreover, Bitcoin currently holds below all the applied moving averages, the 50 Simple Moving Average (SMA), 100 SMA and 200 SMA. Some of these levels must be reclaimed to create solid support levels for gains eyeing $65,000.