Bitcoin (BTC) Finds Support from a NASDAQ 100 Friday Rally

It was a 2^nd consecutive day in the green for Bitcoin (BTC) on Friday. Having reversed losses late in the day on Thursday, the U.S futures delivered strong support going into Friday.

Following a 0.99% gain on Thursday, Bitcoin rose by 1.54% on Friday to end the day at $37,760. The news wires failed to pressure Bitcoin on the day, with the U.S equity markets guiding Bitcoin through the day.

Bitcoin and the NASDAQ

Economic data from the U.S took a back seat on the day, as investors jumped in on the dip. The NASDAQ’s Friday bounce back was the sharpest of the year, with sentiment towards corporate earnings offsetting concerns over interest rates.

Sentiment from the U.S equity markets spilled over to the crypto markets, supporting Bitcoin on the day.

Elsewhere in the crypto market, Ethereum (ETH) rallied by 5.0%, with Cardano (ADA) and Solana (SOL) also finding support. The gains on the day were modest, however.

From the crypto top 10, Terra (LUNA) continued to struggle, however, tumbling by 7.06%.

The Bitcoin Fear & Greed Index

Two consecutive days in the green delivered some upside for the Bitcoin Fear & Greed Index. Having fallen back to 11/100 on 23^rd January, the Index climbed to 24/100 on Friday, inching its way to 30/100, a key level.

At the time of writing, the Bitcoin Fear & Greed Index held steady at 24/100.

The index currently sits in the red, reflecting the market’s bearish sentiment. A move back through to 30/100 and into the orange, however, would reflect a shift in sentiment and a buying opportunity. Back in November, the Index had risen to 84/100 on 9^th November before hitting reverse.

Bitcoin Price Action

At the time of writing, Bitcoin was down by 0.61% to $37,529. Avoiding the day’s $37,337 pivot and sub-$37,000 would bring the first major resistance level at $38,478 into play. Bitcoin would need plenty of support, however, to break out from Friday’s high $38,055.

A fall through the day’s pivot would bring the first major support level at $36,620 in play. An extended sell-off would bring sub-$35,000 levels into play once more, however. The second major support level sits at $35,479.

Looking at the EMAs, the signal has become more bullish. The 50-day EMA continues to pull away from the 100-day EMA and narrow on the 200-day EMA. A continued narrowing would support a move back through to $38,000 levels. Through late Friday, Bitcoin broke out from the 200-day EMA, which currently sits at $37,488.

Market sentiment towards imminent U.S crypto oversight, however, will likely be a test for Bitcoin and the majors over the weekend.