Traders watch bitcoin ‘golden cross’ as BTC slides to near $75,000, ZEC dives 9%
A technical setup brewing on the bitcoin chart could decide which way the market breaks next, with the largest cryptocurrency sliding even as global equities hit record highs.
What to know:
- Bitcoin fell to about $75,500 even as global stocks hit record highs, widening a recent divergence between crypto and equities.
- Traders are focused on an impending golden cross in bitcoin’s moving averages and key resistance around $2,400 in ether, signals that could set crypto’s direction in coming weeks.
- U.S. spot bitcoin ETFs have seen $1.74 billion in outflows as retail traders add leverage, raising the risk of sharp liquidations despite new SEC-approved bitcoin index options aimed at institutions.
What traders are now watching is a setup forming on the bitcoin chart. FXPro analyst Alex Kuptsikevich said in an email the price is finding support near the rising 50-day moving average, while the 200-day moving average briefly acted as resistance earlier in May.
The two lines are on track to cross in the coming weeks, a setup known as a golden cross, which is generally read as a bullish signal. A break of either moving average before the cross could set the direction for crypto markets through the next several weeks, he said.
The flow data has been less encouraging. Spot bitcoin ETFs in the U.S. saw $1.74 billion in withdrawals over the past two weeks, per CryptoOnchain. Retail traders have been adding leverage in the meantime, a combination that has historically preceded sharp liquidation cascades when the market turns against the crowd.
