Bitcoin (BTC) Finds NASDAQ Support to Near $40,000

Key Insights:

• Markets bets of a FED pause on rate hikes supported riskier assets
• Bitcoin (BTC) continued to track the NASDAQ that ended positive territory
• Technical indicators are still bearish despite Friday’s gain

After a choppy few days, volatility moderated on Friday. Recovering from an early day low of $38,044, Bitcoin (BTC) struck a day high of $39,710 before easing back. Following a 1.92% gain on Thursday, Bitcoin rose by 2.31% to end the day at $39,240.

It was also a bullish session for the rest of the crypto top 10.

LUNA jumped by 12.04% to lead the way, with XRP (-0.14%) rallying by 10.62%.

ADA (+5.27%), AVAX (+5.46%), and ETH (+6.63%) also found strong support, while BNB (+3.79%) and SOL (+3.84%) trailed.

Bitcoin Fear & Greed Index Continues Upswing

On Friday, the Bitcoin Fear & Greed index increased to 27/100 to move out of the “Extreme Fear” zone. Despite Bitcoin’s Friday gain, the index slipped back to 26/100. While down on the day, the index remained within the “Fear” zone.

For the Bitcoin bulls, the index will need to move back through to 50/100 to bring $50,000 levels back into play for Bitcoin. A fall through to sub-20/100 would deliver sub-$30,000 levels.

NASDAQ 100 Mini and Bitcoin (BTC) Correlation Remains

On Friday, Bitcoin tracked the NASDAQ 100 mini throughout the day. While news updates on Russia and Ukraine remained negative, bets of a FED pause on rate hikes supported the NASDAQ 100.

Following a 3.35% rally on Thursday, the NASDAQ 100 ended Friday up by 1.64%.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 1.42% to $39,796.

Technical Indicators

Bitcoin will need to avoid the $38,998 pivot to make a run on the First Major Resistance Level at $39,952. The broader market would need to support a breakout from Friday’s high of $39,710.

In the event of an extended rally, the Second Major Resistance Level at $40,664 and $41,000 levels would come into play. The Third Major Resistance Level sits at $42,330.

A fall through the pivot would bring the First Major Support Level at $38,286 into play. In the event of an extended sell-off, Bitcoin could test the Second Major Support Level at $37,332.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a less bearish signal. Bitcoin continues to hold above 50-day EMA. A further narrowing of the 50-day EMA on the 100-day and 200-day EMAs would bring $40,000 back into play.

Avoiding a fall through the 50-day EMA at the $38,900 level would provide some support.