Cryptocurrency Market Update: Bitcoin paces towards $7,000 amid extreme fear and volatility

The Crypto Fear & Greed Index, a platform developed by Alternative.me shows Bitcoin at extreme fear (precisely at 10). On Sunday, the Fear &Greed Index was at 12, similar to last week. Over the weekend, Bitcoin alongside other cryptocurrencies dropped to key support areas after critical resistance zones proved hard to crack. However, a bullish action is underway during the European session with digital assets posting gains between 3%- 7% on the day.

It is apparent that the recovery above $6,000 has not convinced the majority of the investors and traders who currently prefer to remain in the sidelines. The extreme fear shows investors are unbothered by the approaching Bitcoin halving.

In the recent past, experts such as Tom Lee have predicted that BTC/USD could surge following the rewards halving exercise. Instead of investors stocking Bitcoin in anticipation of a rally, they remain skeptical with some even predicting a fall in the price to $2,500. The bearish sentiments emanate from the recent fall due to the COVID-19 outbreak. Global financial markets remain volatile and Bitcoin’s recent correlation with the stocks stills sends fear across the board.

Bitcoin price update

BTC/USD is teetering at $6,284 following a 7% growth on the day. An intraday high of $6,346 has been achieved on the day. However, the trend remains bullish and the volatility high, which means that bullish action could extend the leg above the broken support at $6,400 in the near term.

BTC/USD 4-hour chart

ETH/USD is trading 5.27% higher on the day. The second-largest cryptocurrency has adjusted upwards from $124.17 (intraday low) to $131 (market value). $131.82 remains the intraday but this might not be for long as the existing trend is bullish, and the volatility high.

Ripple price update

XRP/USD is strongly bullish after conquering the resistance at $0.1700. The price is up 6.12% higher on the day to exchange hands at $0.1727. The next hurdle is at $0.1800; which if broken could easily allow smooth sailing above $0.2500.