Bitcoin (BTC) Fear & Greed Index Holds Steady Despite BTC Fall

Key Insights:

• Bitcoin (BTC) fell by 1.03% on Saturday to extend the losing streak to four sessions.
• There were no crypto news stories to provide BTC and the broader market with direction, leaving the Fed and recent US economic indicators to test investor appetite.
• The Bitcoin Fear & Greed Index slipped from 31/100 to 30/100, to again test the upward trend towards Neutral.

On Saturday, bitcoin (BTC) fell by 1.03%. Following a 2.02% slide from Friday, bitcoin ended the day at $22,452. Bitcoin extended the current losing streak to four sessions.

After a bullish start to the day, BTC rise to a high of $22,998 to test resistance at $23,000 before hitting reverse.

Falling short of the First Major Resistance Level at $23,454, BTC fell to a low of $21,954.

BTC fell through the First Major Support Level at $22,217 before the partial recovery to $22,452.

With the US markets closed, Friday’s weak US private sector PMI numbers for July continued to weigh. Investor apprehension ahead of the Fed monetary policy decision on Wednesday also likely tested buyer demand.

Bitcoin Fear & Greed Index Slips Again on BTC Decline

Today, the Fear & Greed Index slipped from 31/100 to 30/100. The Index fell for a third consecutive day, weighed by bitcoin extending its losing streak to four sessions.

Bitcoin failed to revisit $23,000 levels, with the Tesla news and the disappointing US private sector numbers continuing to weigh. Adding further pressure going into the weekend was a likely shift in focus to the Fed.

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.

A move through the current week high of 34/100 would signal improved investor sentiment and a possible bitcoin move towards $30,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.55% to $22,575.

A range-bound start to the day saw BTC rise to an early high of $22,668 before easing back.

Technical Indicators

BTC needs to move through the $22,467 pivot to target the First Major Resistance Level (R1) at $22,984 and the Saturday high of $22,998.

BTC would need a bullish session to support a breakout from $22,500.

An extended rally would test the Second Major Resistance Level (R2) at $23,510 and resistance at $24,000. The Third Major Resistance Level (R3) sits at $24,556.

Failure to move through the pivot would bring the First Major Support Level (S1) at $21,936 into play.

Barring an extended sell-off, BTC should avoid sub-$21,000. The Second Major Support Level (S2) at $21,424 should limit the downside.

The Third Major Support Level (S3) sits at $20,380.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 50-day EMA, currently at $22,293.

The 50-day EMA narrowed to the 200-day EMA, while the 100-day EMA closed in on the 200-day EMA, to deliver mixed BTC signals.

A bullish cross of the 100-day EMA through the 200-day EMA would support a return to $24,000 to target the elusive $25,000 handle. However, BTC would need to hold above the 50-day EMA to avoid a return to sub-$21,000.

Looking at the trends, BTC would need a move through the July high of $24,276 and $25,000 to target the June high of $31,956. A bullish cross of the 50-day EMA through the 200-day EMA would support a run at the June high.

From $31,200, BTC should have a clear run at the May high of $40,004.

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.