Bitcoin (BTC) Fear & Greed Index Forms Upward Trend by Hitting 24/100
Key Insights:
- It was a choppy session on Friday, with bitcoin (BTC) falling into the red in the final hour of the session.
- Economic data from the US eased recession jitters, with the NASDAQ managing to avoid the red to deliver support.
- The Bitcoin Fear & Greed Index rose to 24/100 despite the choppy Friday session.
On Friday, bitcoin (BTC) slipped by 0.09%. Following a 5.19% rally from Wednesday, BTC ended the day at $21,593.
A bullish start to the day saw BTC break through the First Major Resistance Level at $22,221 to strike a high of $22,377
Your capital is at risk
Coming up short of $22,500, BTC slid to a low of $21,183 as investors responded to the US nonfarm payroll figures for June.
However, steering clear of the First Major Support Level at $20,621, bitcoin bounced back to test resistance at $22,000 before easing back.
In June, US nonfarm payrolls jumped by 372k, following a 384k rise in May. The sharp increase eased fears of an imminent recession. However, the June figure also gives the Fed the wiggle room to deliver another 75-basis point rate hike this month.
Following the Thursday 2.28% rally, the NASDAQ rose by 0.12% to end the week up 4.6%. The positive end to the week delivered BTC support before a final-hour pullback.
Bitcoin Fear & Greed Index Jumps to 24/100
This morning, the Fear & Greed Index rose from 20/100 to 24/100. A shift in market sentiment, in response to the Fed minutes, continued to support the move towards the “Fear” zone that begins at 25/100.
Hitting the highest level since a May 5, 27/100, a continued upward trend would indicate a marked shift in investor sentiment.
For the bulls, avoiding a fall back to sub-18/100 and a move into the “Fear” zone at 25/100 will now be the key.
The Index last sat in the “Fear” zone on May 5, when bitcoin stood at $36,630.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up 0.20% to $21,637.
Technical Indicators
BTC needs to move through the $21,719 pivot to target the First Major Resistance Level (R1) at $22,250 and the Friday high of $22,377.
BTC would need a bullish session to support to return to $22,000.
An extended rally would test the Second Major Resistance Level (R2) at $22,910 and resistance at $23,000. The Third Major Resistance Level (R3) sits at $24,106.
Failure to move through the pivot would bring the First Major Support Level (S1) at $21,059 into play.
Barring an extended sell-off, BTC should avoid sub-$20,500, with the Second Major Support Level (S2) at $20,527 likely to limit the downside.
The Third Major Support Level (S3) sits at $19,330.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $20, 816.
The 50-day EMA closed in on the 100-day EMA. The 100-day EMA narrowed to the 100-day EMA; bitcoin price positive.
A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $23,000.
However, a retreat through the 100-day EMA would test support at $20,000.