Uptrend Broken? Bitcoin Tumbles Below $10K as Greed Hits 6-Month High

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Bitcoin (BTC) has fallen below its landmark $10,000 price point after failing to break $10,500 resistance, mimicking a similar $300 drop earlier this week. 

Crypto market 1-day price chart. Source: Coin360

Bitcoin drops to $9,800s

Coin360 and Cointelegraph Markets data show Bitcoin has fallen below the $10,000 big-even, to a press time price of $9,884. 

“Good response by the bulls but 10k needs reclaiming,” commented Cointelegraph Markets contributor filbfilb in his Telegram channel after BTC price initially rebounded back over the $10,000 mark. He continued: 

“We bounced off the 20 DMA, which is meant to act as support, but there is an argument the uptrend is broken. It is the weekend and it would leave us with a gap above. Hopefully, some of you got filled. I missed out on that by a few bucks. I’m going to wait and see what happens with the OBV on the 4 hour for now.”  

Meanwhile, another fellow analyst Michael van de Poppe was more upbeat saying that a pullback was expected, if not a healthy part of a bull market. 

“First of all: a retracement is still very healthy for this market, even if ETH goes to $240 and BTC to $9,500,” he wrote, adding: 

“Second of all: no, we’re not going to $3,000. Third of all: we’re still early.”

Crypto participants express greed 

Over the past few weeks, crypto’s largest asset has broken out of its multi-month downtrend, taking several swipes at its most recent price swing high near $10,500. After hovering between $10,500 and $10,100 for the last couple of days, unable to surge above $10,528, Bitcoin made a decisive downside move below $10,000. 

Coinciding with the drop, crypto’s Fear and Greed Index posted a reading of 64, indicating the market may have gotten a tad greedy and unrealistic with its expectations.

Source: Crypto Fear & Greed Index

Source: Crypto Fear & Greed Index

As crypto participants’ emotions became overextended, the Fear and Greed Index listed highs not seen since August 2019.

BTC’s recent rally also took many altcoins for a positive price ride as well, with coins such as Tezos (XTZ) and Ether (ETH) enjoying double-digit percentage gains. At press time, Bitcoin’s market dominance stands at 62.2% with the cryptocurrency market capitalization falling to $289 billion.

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