Where is Bitcoin headed this week after BTC drops below $60,000

• Bitcoin is correcting on Monday, down nearly 1% as it settles back below the $60,000 level.
• Crypto Fear and Greed Index Shows ‘Fear’ as Bitcoin Erases Recent Gains.
• Bitcoin traders continue to take profits, with nearly $720 million in profits made over the past six days.

Bitcoin (BTC) is extending its correction and erasing Friday’s gains after failing to hold above the psychologically important $60,000 level over the weekend. Since Saturday’s open, BTC has erased nearly 3% of its value and is trading near $58,500 on Monday at the time of writing.

The Crypto Fear and Greed Index, which measures the sentiment of market participants on a scale of 0 to 100, shows “fear” among traders.

Bitcoin loses value on weekends and Mondays

Bitcoin, the largest cryptocurrency by market capitalization, has been correcting since the weekend. BTC suffered a decline after failing to hold above the psychological level of $60,000.

The Crypto Fear and Greed Index turned neutral as Bitcoin bounced back above $60,000 on Friday. Since the asset fell below the key level over the weekend, the index has returned to “fear” levels. This shows the importance of the $60,000 price level for traders of the asset.

Bitcoin Fear & Greed Index

Data from crypto tracker Santiment shows that Bitcoin traders have been consistently profitable, with nearly $720 million in gains between September 10 and 16 at the time of writing, as measured by the Network metric Realized Profit/Loss (NPL), which tracks the net profit/loss realized from all tokens traded in a day.

Widespread profit-taking could push prices lower as it increases selling pressure on BTC.

Bitcoin Price and NPL

Where is Bitcoin headed?

Bitcoin could extend losses and sweep liquidity at the lower end of the fair value gap (FVG) between $55,318 and $56,386. From the current level, BTC could erase almost 6% of its value to reach the target of $55,318, the September 8 high.

The Relative Strength Index (RSI), a momentum indicator, is above 50 on the daily time frame at 50.40. The RSI at 50 marks the neutral level, meaning Bitcoin is neither overbought nor oversold and signaling a lack of directional momentum.

The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, signaling an underlying positive momentum in the Bitcoin price trend. Bitcoin may attempt a recovery once it sweeps the liquidity in the disequilibrium zone and tries to reach the $60,000 level, a psychological barrier.

BTC/USDT Daily Chart

Looking to the downside, BTC could find support at the September 6 low of $52,550, which marks the lowest level for Bitcoin this month.