Bitcoin price has extended its losses as the crypto market exudes extreme fear. The crypto fear & greed index is at 18, which was last hit in July.
In the past week, it traded below the previously steady support zone of $60,000 amid the risk-off sentiment. The risk aversion will likely continue into the new week as investors focus on the Fed’s hawkish tone and Omicron variant.
BTC is hovering below the psychological level of 50,000 after plunging over the weekend. After hitting an intraday high of 57,792.77 on Friday, the cryptocurrency plunged to a low of 45,241.45 on Saturday. Even with the subsequent rebound, there is not enough bullish momentum to break the resistance at 50,000.
At the time of writing, Bitcoin price was up by 0.09% at 49,290.00. On a four-hour chart, it is below the 25 and 50-day exponential moving averages.
In the short term, I expect the crypto to remain under pressure. For it to revive its prior rallying, there will need to be enough buyers to push it past the crucial level of 55,000. In the meantime, it will likely hover around the psychological level of 50,000.
Past the aforementioned zone, the resistance levels to look out for will be the 25 and 50-day EMAs at 51,833.27 and 53,671.39 respectively. On the flip side, Bitcoin price may erase its Sunday gains as the bears eye the crucial support zone of 45,000.
This post was last modified on Dec 06, 2021, 00:09 GMT 00:09