- 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%