Bitcoin price dropped below $6,000 after traders failed to hold the $6,200 support.
For the second time in one week Bitcoin (BTC) price has fallen below $6,000. Today’s pullback below the $6,000 mark comes as the weekly and monthly close approach and its possible that the price could also be influenced by investors fear that traditional markets may continue to correct at Monday’s opening bell.
Crypto market daily price chart. Source: Coin360
At the time of writing the price is trading at $5,917 after bulls failed to hold the $6,200 support. For the short term, Bitcoin will need to hold $5,850 or traders will set their sights on $5,700, a point where the price has found support at least 5 times since March 12.
BTC USDT 4-hour chart. Source: TradingView
Below $5,700, $5,350 is the next area of support and below this level traders will look to $4,446 where the price previously formed a double bottom.
Fear continues to weigh on investor sentiment
Crypto Fear & Greed Index. Source: Alternative.me
Currently the Crypto Fear & Greed Index shows a reading of 12, representing ‘extreme fear’ and also highlighting the fact that crypto traders remain extremely bearish about the current state of the crypto market.
Even with the halving event approaching, traders are not feeling strongly bullish but the current reading at 12 is an improvement from the past two weeks when the indicator dropped to 8 as the Bitcoin price corrected to $3,775.
Many traders disregard Bitcoin’s weekend price action as trading volume tends to thin out during this time and looking at the shorter timeframes traders will notice that the price lost momentum as volume dried up and eventually broke below the lower arm of the Bollinger Band indicator.
Bitcoin daily price chart. Source: Coin360
Altcoin prices mirrored Bitcoin’s price drop and many of the top 20 coins corrected by 3% to 5%. XRP price dropped by 7.64%, Binance Coin pulled back 5.37%, and Monero (XMR) lost 6.57%.
The overall cryptocurrency market cap now stands at $168 billion and Bitcoin’s dominance rate is 64.8%.