Bitcoin’s parabolic move to the downside continues.
The leading cryptocurrency briefly dropped below $7,000 before bouncing to its current price of $7,194.
The drop once again pulled the overall crypto market into the deep red, with Ethereum, XRP, Bitcoin Cash and Litecoin dropping 3% or more in the last 24 hours.
Here’s the bird’s-eye view from COIN360 at time of publishing.
Amid the crypto market free fall, the needle on the Crypto Fear & Greed Index from Alternative.me has shifted into “extreme fear.”
The gauge analyzes market volatility, surveys and sentiment on Twitter and other social media platforms to judge the mood of the overall crypto market.
According to Alternative.me, extreme fear could be an indication that the market is beginning to be oversold, and a swing to the upside may be on the horizon.
“Extreme fear can be a sign that investors are too worried. That could be a buying opportunity. When Investors are getting too greedy, that means the market is due for a correction.”
Crypto analyst and economist Alex Krüger pinpoints Bitcoin’s fall from nearly $14,000 this past June on short-lived euphoria triggered by President Xi Jinping who declared China’s support for blockchain technology.
That pump has vaporized and China is reiterating its tough stance on crypto trading.
“Some asked ‘why did this happen?’ A rationalization:
#1 China news used to drive price +42% (front-running expected new demand).
#2 Price dripped lower on low volume => increased demand never materialized.
#3 Sellers sold every single rip. They just did.”
Fellow analyst DonAlt says today’s close is key and BTC needs to stay above $6,900 in order to trigger a relief rally and avoid another immediate big move to the downside.
“Hit my above mentioned $6.9k support, now it’s time to wait & see if we can close the daily above it.
If yes, temporary relief up to 7700$ or even $8250, if not I’ll bid the HTF support around $6000.”