Is the crypto market taking a dead cat bounce?
Bitcoin (BTC) price drops below $113,000 at press time on Tuesday, undermining the 4% gains from Sunday. The sell-off pressure extends to top altcoins, resulting in an over 3% drop in Ethereum (ETH), Ripple (XRP), and Solana (SOL). The derivatives market remains on edge as the Open Interest remains low, while rising liquidations push more capital out of the market.
Bitcoin risks further losses
Bitcoin takes a bearish reversal from the 50-day Exponential Moving Average (EMA) at $115,508, risking an extension to last week’s three-day correction, including Friday’s 7% decline. At the time of writing, BTC approaches $112,500, undermining the support from the 100-day EMA at $113,501.
The technical indicators on the daily chart…
