The cryptocurrency market has responded positively to its weekend meltdown and pushed higher during Asian trade on Monday. With strong gains being seen across the board, the value of the entire market has lifted to US$312 billion according to Coin Market Cap.
This morning the market was down to US$283.5 billion, meaning an increase of over 10% in little over eight hours.
The star of the show has arguably been the bitcoin (BTC) price. It is up over 7% since this time yesterday to US$8,213.99 per coin, increasing its market capitalisation to US$139 billion.
This gain came despite there being no notable positive catalyst and even one analyst tipping BTC to fall significantly in the near future.
According to Bloomberg, Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd, has been studying the cryptocurrency's past movements and believes a "death cross" is on the horizon.
A death cross is a technical analysis warning sign which refers to a situation whereby an asset price's 50-day moving average drops below its 200-day moving average. Generally, when this happens traders will hit the sell button in a hurry.
Mr Day thinks that if the death cross were to happen it could potentially lead to the bitcoin price falling as low as US$2,800. That's a decline of almost 66% from the current price.
What else is happening in the crypto world today?
It isn't just bitcoin that is climbing. Other cryptocurrencies making a notable move higher today are Ripple (XRP), Cardano (ADA), and Stellar Lumens (XLM).
These altcoins are currently up a sizeable 10%, 12%, and 18%, respectively, over the last 24 hours.
Traders will now be crossing their fingers that the market can hold onto these gains during European and U.S. trade tonight.
