Bitcoin (BTC) Fear & Greed Index Exits the Extreme Fear Zone

Key Insights:

• Bitcoin (BTC) rallied by 7.95% on Monday to wrap up the day at $22,000.
• While easing bets of the Fed delivering a 100-basis point rate hike provided support, crypto network news updates were the key.
• The Bitcoin Fear & Greed Index jumped from 21/100 to 30/100, exiting the Extreme Fear zone for the first time since May 5.

On Monday, bitcoin (BTC) rallied by 7.95%. Reversing a 1.92% fall from Sunday, bitcoin ended the day at $22,447.

A bullish session saw BTC rally from an early low of $20,751 to a high of $22,749.

BTC broke through the First Major Resistance Level (R1) at $21,385 and the Second Major Resistance Level (R2) at $21,971.

A late pullback saw BTC briefly fall to $21,400 levels before a break back through R1 and R2 to end the day at $22,447.

Positive news from the crypto space delivered investors a reason to jump back in. From the weekend, a September Merge date for Ethereum was crypto market bullish. Reports of SEC Chair Gary Gensler looking to give the crypto market exemptions from some securities regulations were also crypto market positive.

Since late 2021, regulatory chatter has weighed on the broader crypto market. A regulatory environment supportive of cryptos and innovation would be positive for the crypto space.

The upside came despite the NASDAQ 100 falling by 0.81%.

Bitcoin tracked the NASDAQ 100 through the US session, with a post-US market close rally delivering the upside on the day.

This morning, the NASDAQ 100 Mini was up by 33 points to provide early support.

Bitcoin Fear & Greed Index Exits the Extreme Fear Zone

Today, the Fear & Greed Index jumped from 20/100 to 30/100. A bitcoin return to $22,000 reflected a shift in investor sentiment to support a move out of the “Extreme Fear” zone.

The Index hit its highest level since April 10, when the Index stood at 34/100 and bitcoin at $42,111.

For the bulls, the next target is the “Neutral” zone, which starts at 46/100. The Index last sat in the “Neutral” zone on April 6, when bitcoin stood at $45,000 levels.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.89% to $22,647.

A mixed start to the day saw BTC fall to an early low of $22,230 before rising to a high of $22,901.

Technical Indicators

BTC needs to avoid the $21,987 pivot to target the First Major Resistance Level (R1) at $23,211.

BTC would need a bullish session to support a return to $23,000.

Another extended rally would test the Second Major Resistance Level (R2) at $23,976 and resistance at $25,000. The Third Major Resistance Level (R3) sits at $25,962.

A fall through the pivot would bring the First Major Support Level (S1) at $21,222 into play.

Barring an extended sell-off, BTC should avoid sub-$21,000 and the Second Major Support Level (S2) at $19,995.

The Third Major Support Level (S3) sits at $18,010.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 200-day EMA, currently at $21,849.

The 50-day EMA pulled away from the 100-day EMA while narrowing to the 200-day EMA, both positive BTC indicators.

A bullish cross of the 50-day EMA through the 200-day EMA would bring $30,000 into play. However, BTC will need to avoid a fall through the 200-day EMA to avoid a reversal.

On a trend analysis basis, bitcoin would need a move through a May 30 high of $32,503 to target the March 28 high of $48,192. Near-term, resistance at $25,000 will likely be the first test should the upward trend resume.

For the bears, the June 18 low of $17,601 would be the next target, with a fall through last week’s low of $18,919 likely to test investor resilience.