Bitcoin (BTC) Fear & Greed Index Remains in the Extreme Fear Zone

Key Insights:

• It was a choppy but bullish Tuesday, with bitcoin (BTC) falling by 0.27% to end the day at $20,159.
• Recession fears hit bitcoin before the NASDAQ supported a brief recovery through the US session.
• However, technical indicators remained bearish, with bitcoin below the 100-day EMA.

On Tuesday, bitcoin (BTC) slipped by 0.27%. Following a 3.66% rally on Monday, bitcoin ended the day at $20,159.

A bearish morning saw bitcoin fall to a low of $19,284.

Bitcoin fell through the First Major Support Level at $19,405 before rallying to a high of $20,726.

However, falling short of the First Major Resistance Level at $20,672, bitcoin eased back to end the day at sub-$20,200.

Fears for a global recession hit bitcoin and the broader crypto market. Economic indicators from the Eurozone disappointed added to the market angst.

Through the morning session, we saw crude oil prices and bitcoin aligned, as fears of a slide in demand weighed on crude.

US economic data delivered the NASDAQ 100 with support, however, which drove bitcoin into positive territory prior to a late pullback.

Today, US economic indicators could shift sentiment towards the US economy, with ISM non-manufacturing PMI (Wed) in focus this afternoon.

Later in the day, the FOMC meeting minutes will also draw interest. Weak ISM numbers and a Fed willing to bring inflation to target at any cost would pressure bitcoin.

At the time of writing, the NASDAQ 100 Mini was down 7.75 points.

Bitcoin Fear & Greed Index

This morning, the Fear & Greed Index slipped from 19/100 to 18/100. The modest decline came from a late BTC pullback, weighed by fears of an economic recession.

However, for the bitcoin bulls, avoiding a return to sub-14/100 was bitcoin positive.

A resumption of the latest upward trend towards the 25/100 and the “Fear” zone would deliver BTC support.

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 0.66% to $20,292.

A mixed start to the day saw BTC fall to an early low of $20,092 before striking a high of $20,350.

BTC left the Major Support and Resistance Levels untested early on.

Technical Indicators

BTC will need to avoid the $20,053 pivot to test the First Major Resistance Level (R1) at $20,827 and resistance at $21,000.

BTC would need NASDAQ 100 Mini support to breakout from the Tuesday high of $20,726.

An extended rally would test the Second Major Resistance Level (R2) at $21,496 and resistance at $22,000. The Third Major Resistance Level (R3) sits at $22,940.

A fall through the pivot would bring the First Major Support Level (S1) at $19,390 into play.

Barring an extended sell-off, BTC should avoid sub-$19,000 and the Second Major Support Level (S2) at $18,613.

The Third Major Support Level (S3) sits at $17,172.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 100-day EMA, currently at $20,733.

The 50-day EMA narrowed to the 100-day EMA. The 100-day EMA flattened on the 100-day EMA; bitcoin price positive.

A breakout from the 100-day EMA would bring R2 and $22,000 into play.

However, a retreat through the 50-day EMA would test S2 support at $18,613.