BTC: COULD CONTINUE TO FALL
Bitcoin corrects on Monday, dropping almost 1% as it trades back below the $60,000 level.
Cryptocurrency Fear and Greed Index shows 'fear' as Bitcoin erases recent gains.
Bitcoin traders continue to take profits, with nearly $720 million in profits realized in the past six days.
Bitcoin (BTC) is extending the correction and erasing Fridayâs gains after failing to hold above the psychologically important $60,000 level over the weekend. Since Saturdayâs open, BTC has erased nearly 3% of its value and is trading near $58,500 at the time of writing on Monday.
The Cryptocurrency Fear and Greed Index, which measures sentiment among market participants on a scale of 0 to 100, shows "fear" among traders.
Bitcoin loses value over the weekend and Monday
Bitcoin, the largest cryptocurrency by market cap, has been correcting since the weekend. BTC suffered a dip after failing to hold above the psychological level of $60,000.
The Cryptocurrency Fear and Greed Index turned neutral as Bitcoin rallied above $60,000 on Friday. Since the asset's fall below the key level over the weekend, the Index has returned to "fear" levels. This shows the importance of the $60,000 price level for traders of the asset.
Large-scale profit-taking could push prices lower as selling pressure on BTC increases.
Where is Bitcoin headed?
Bitcoin could extend losses and sweep liquidity at the lower boundary of the Fair Value Gap (FVG) between $55,318 and $56,386. From the current level, BTC could erase almost 6% of its value to reach the target of $55,318, the high of September 8.
The Relative Strength Index (RSI), a momentum indicator, is trading above 50 on the daily time frame at 50.40. An RSI at 50 marks the neutral level, meaning Bitcoin is neither overbought nor oversold and signals a lack of directional momentum.
The Moving Average Convergence/Divergence (MACD) indicator is showing green histogram bars above the neutral line, signaling an underlying positive momentum in the Bitcoin price trend. Bitcoin could attempt a recovery once it sweeps the liquidity in the imbalance zone and attempts a rally towards the $60,000 level, a psychological barrier.
Looking down, BTC could find support at the September 6 low of $52,550, which marks the lowest level for Bitcoin this month.
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