[Asia Economy New York=Correspondent Baek Jong-min] Cryptocurrency Bitcoin is seeking a rebound after experiencing a plunge to the $33,000 range on the 20th (local time).
According to CoinMarketCap, as of 4:15 PM on the same day, the price of Bitcoin is trading at $35,900, roughly unchanged from 24 hours earlier.
Ethereum is trading at $2,240, up 1%, while Dogecoin is down 2.8% at 28 cents.
Bitcoin showed weakness in the early morning, dropping to the low $33,000 range, but later surged back near the $36,000 level, showing significant volatility.
On this day, Bitcoin experienced a 'dead cross,' where the 50-day moving average fell below the 200-day moving average.
Typically, a dead cross is seen as a sign of further price declines. The sharp drop on this day is also believed to be due to sell-offs triggered by concerns over additional declines following the dead cross.
Bitcoin has experienced six dead crosses so far.
However, despite the downward trend of Bitcoin's 50-day moving average, the 200-day moving average is still on an upward trajectory. Some cautiously predict that since the 200-day average is rising, the 50-day moving average might also reverse and start rising.
There is also analysis that the decline in Bitcoin on this day was caused by a drop in the mining hash rate. Bloomberg reported that Bitcoin's hash rate plunged by 17% in a single day. This is attributed to China cutting power supply to miners in Sichuan Province.
Bitcoin prices have tended to weaken when the hash rate falls. In April, Bitcoin dropped by $10,000 when miners in China's Xinjiang region stopped mining due to power outages.
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