Bitcoin drops below $6000 — market pessimism levels rise

Bitcoin has dropped below $6000 last Friday and stayed there this weeked. For some observers, this is a continuation of its return back to normal values, as they think it had become grossly overestimated since autumn last year. For others, this is just a normal correction on the way to bigger values. The latter approach is shared by investor Brian Kelly on CNBC. Reporter Melissa Lee has made a little ‘Bitcoin funeral’ on the same TV channel.

Image: Bloomberg / Bitstamp

Another financial analyst, Todd Gordon (tradinganalysis.com) thinks that Bitcoin could even reach $5000. Around the $4000 or $3000 mark, the price trend is going to reverse, expert thinks.

Meanwhile, the market itself is deeply concerned with the situation, as witnessed by the Fear & Greed Index on alternative.me which is based, as the developers claim, on several market factors including the capitalization levels, trade volume, social media posts and search requests.

Usual events following the drop of Bitcoin also happened this time: altcoins followed the first cryptocurrency, while experts have once again connected the latest bearish trend to an offline event - the increased regulatory pressure in Japan. This country is one of the most important crypto hubs both in Asia and worldwide.

Title image: Getty Images