Bitcoin (BTC) Fear & Greed Index Heads Towards the “Fear” Zone

Key Insights:

• Bitcoin (BTC) rose by 1.21% on Friday to extend its winning streak to three sessions.
• Positive US retail sales figures and FOMC member chatter delivered the NASDAQ 100 and bitcoin with support.
• The Bitcoin Fear & Greed Index jumped from 15/100 to 21/100, reflecting easing fears of another BTC sell-off.

On Friday, bitcoin (BTC) rose by 1.21%. Following a 1.71% gain on Thursday, BTC ended the day at $20,827. It was a third consecutive day in the green, with market sentiment towards Fed monetary policy delivering support.

A bearish start to the day saw BTC fall to a low of $20,373 before making a move.

Steering clear of the First Major Support Level at $19,842, BTC rallied to a high of $21,185.

BTC broke through the First Major Resistance Level at $21,092 before falling back to sub-$21,000.

FOMC member chatter and the NASDAQ 100 delivered BTC support, while upbeat US retail sales figures penciled in a 75-basis point rate hike for July.

On Friday, the NASDAQ 100 rallied by 1.79%.

Bitcoin Fear & Greed Index Jumps on Fed Chatter and US Retail Sales

This morning, the Fear & Greed Index jumped from 15/100 to 21/100.

Reversing recent losses, the Index moved back towards the “Fear” zone, reflecting easing fears of another BTC reversal.

On Friday, Fed chatter supported riskier assets, with a 100-basis point hike seemingly off the table.

The bulls will now look for a return to the “Fear” zone to signal a BTC move towards $25,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.32% to $20,760.

A range-bound start to the day saw BTC rise to an early high of $20,853 before falling to a low of $20,752.

Technical Indicators

BTC needs to move through the $20,794 pivot to target the First Major Resistance Level (R1) at $21,215.

BTC would need a bullish session to support a breakout from the Friday high of $21,185.

An extended rally would test the Second Major Resistance Level (R2) at $21,606 and resistance at $22,000. The Third Major Resistance Level (R3) sits at $22,419.

Failure to move through the pivot would bring the First Major Support Level (S1) at $20,405 into play.

Barring an extended sell-off, the Second Major Support Level (S2) at $19,982 should keep BTC from a fall to sub-$19,500.

The Third Major Support Level (S3) sits at $19,171.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $20,608.

The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowed to the 200-day EMA; positive BTC indicators.

A further 50-day EMA narrowing to the 100-day EMA would bring $21,500 into play.

The bulls will look for a hold above the 100-day EMA and a breakout from R1. A move through $21,500 would support a run at R2 and the 200-day EMA, currently at $21,919.

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.