Bitcoin Price Holds Key $5.9K Support, Avoiding a Retest of Recent Lows

As the Coronavirus pandemic continues to unfold, markets, both traditional and crypto, remain highly unpredictable. Even gold has failed to provide safety for investors and Bitcoin is undergoing a demanding test as a new asset class in an unprecedented health and financial crisis.

Crypto market daily performance. Source: Coin360

As traditional markets gear up for another week of turbulent trading, volatility is expected to return to the crypto market as well. However, with rumours of U.S. stock trading halting completely, it’s hard to say how the crypto market will behave this coming week.

Although Treasury Secretary Steven Mnuchin has previously stated that markets will remain open, desperate times may call for desperate measures. If these rumours materialize, cryptocurrencies could prove to be the only alternative to traditional markets.

How is Bitcoin holding up?

BTC USD weekly chart. Source: TradingView​​​​​​​

BTC USD weekly chart. Source: TradingView

One of the major price points to be aware of is the $5,400 mark. If Bitcoin (BTC) falls below that level, it will be a very bearish scenario for crypto as a whole. Although the price rose to a daily high of $6,400 on Sunday, a close above $5,900 is necessary.

BTC USD daily chart. Source: TradingView​​​​​​​

BTC USD daily chart. Source: TradingView

Currently the Moving Average Convergence Divergence (MACD) is showing some consolidation on the daily and weekly charts. For traders this is typically a good signal to buy on and assuming this continues, things could look quite bullish for Bitcoin.

BTC USD daily chart. Source: TradingView​​​​​​​

BTC USD daily chart. Source: TradingView

If the price breaks above the $6,200-$6,400 before the weekly close, investors will look for a run to the $6,900-$7,000 resistance, although chances of that happening today seem low.

Investors remain extremely bearish

Currently, the Crypto Fear and Greed Index shows a reading of 11 which represents extreme fear. Although it’s up 2 points in the previous few days, this still shows extreme fear in the markets. If selling pressure leads the price to break below the $5,900 mark, Bitcoin may…

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