Bitcoin’s Future Direction Following Drop Below $60,000 This Week
Bitcoin experienced a correction on Monday, dropping nearly 1% as it fell back below the $60,000 mark. The Crypto Fear and Greed Index reflected “fear” sentiment as Bitcoin wiped out recent gains. Traders capitalized on profits, with approximately $720 million in gains realized over the past six days.
The decline in Bitcoin’s value persisted over the weekend and into Monday, with the cryptocurrency unable to sustain levels above $60,000. As of Monday, Bitcoin’s value hovered around $58,500 after a 3% decrease since Saturday’s opening.
The Crypto Fear and Greed Index, which gauges market sentiment on a scale from 0 to 100, indicated a prevailing sense of fear among traders.
Bitcoin’s market correction followed its inability to hold above the crucial $60,000 threshold. The Crypto Fear and Greed Index shifted back to “fear” levels after Bitcoin dipped below $60,000 over the weekend, underlining the significance of this price point for traders.
Data from Santiment revealed that Bitcoin traders consistently seized profits, with around $720 million in realized gains recorded between September 10 and 16. This profit-taking behavior could potentially exert downward pressure on Bitcoin prices.
Bitcoin’s trajectory remains uncertain, with a potential further decline expected to test liquidity near the lower boundary of the Fair Value Gap between $55,318 and $56,386. The Relative Strength Index (RSI) indicated neutrality with a value above 50, suggesting a lack of clear directional momentum.
The Moving Average Convergence Divergence (MACD) indicator displayed positive momentum, hinting at a possible recovery for Bitcoin once it navigates the liquidity zone and aims for a rally towards the psychological barrier of $60,000.
In terms of support levels, Bitcoin could find backing at the September 6 low of $52,550, marking the lowest point for Bitcoin in the current month.
Overall, Bitcoin’s recent correction, profit-taking activities by traders, and potential price movements suggest a dynamic and evolving landscape for the leading cryptocurrency.
