Bitcoin Price Analysis: Extreme Fear & Greed Index Shakes BTC/USD Stability As $5,000 Beckons
- Bitcoin price slides under $6,000 and continues to explore levels towards $5,500.
- BTC/USD technical picture is positive but not strong enough to support gains above $6,000.
Bitcoin price narrowed towards $6,000 over the weekend session as discussed in the price analysis on Friday. The prediction that the price could hit lows at $5,500 did not materialize. However, there was a significant drop from levels close to $7,000 to those under $6,000. BTC/USD must hold above the short term support at $5,850. If losses extended under this zone, the next anchor zone is $5,700 (a former buyer congestion zone).
According to the data provided by Alternative.me, the crypto fear & and greed index is at 12 (the extreme fear zone), slightly above the previous day’s 8. The index suggests that traders are still skeptical of the stability in the market amid the ongoing struggle to keep the Coronavirus outbreak in check. Investors are also unbothered by the approaching Bitcoin reward halving event.
Bitcoin Price Technical Picture
At the time of writing, Bitcoin price can barely hold above $6,000 although it is exchanging hands at $5,998. The correction from levels close to $7,000 overran the bearish flag pattern support, opening the Pandora box. BTC/USD remains vulnerable to further declines eyeing $5,000 especially if $5,800 short term support gives in. Consequently, the gap between the 100 SMA and the 50 SMA in the 4-hour range continues to widen suggesting that sellers could remain in the driver seat longer than expected.
According to the RSI, buying pressure is present but not enough to sustain a steady momentum above $6,000. For now, the concentration must be channeled to defending $5,800 and pulling Bitcoin above the broken support at $6,200.
Bitcoin Key Levels
Spot rate: $5,998
Relative change: 114
Percentage change: 1.95%
Trend: Bearish
Volatility: Expanding
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
