Bitcoin (BTC) Gyrates as Investors React to the Latest News Wires

It was a particularly choppy start to the week for Bitcoin (BTC). Following a 4.26% tumble on Sunday, Bitcoin slid by 3.54% on Monday to end the day at $37,037.

Geopolitics continued to be a key driver following last week’s return to sub-$40,000 levels. Monday’s loss marked a 5th day in the red from 6-sessions.

Things were not much better for the rest of the crypto top 10.

AVAX and XRP led the way down, sliding by 9.23% and by 9.75%, respectively.

ADA (-8.05%), BNB (-6.25%), and SOL (-8.60%) also saw heavy losses. While ETH fell by a relatively modest 2.04%, LUNA bucked the trend, rising by 1.24%.

Bitcoin Fear & Greed Index Continues Upswing

On Monday, the Bitcoin Fear & Greed Index fell from 27/100 to 25/100. The decline saw the Index return to the Extreme Fear zone. In response to Bitcoin’s loss on Monday, the Index fell back to 20/100 this morning.

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 Evident

While the U.S markets were closed on Monday, there was evidence of a correlation between the NASDAQ 100 and Bitcoin.

Market reaction to news updates on Russia and Ukraine influenced the NASDAQ 100 mini and Bitcoin throughout the day. The chart below shows movement and correlation stemming from investor reaction to the latest news.

At the time of writing, the NASDAQ 100 Mini was down by 305 points. While in the deep red, this was up from a heavier loss from early on, providing Bitcoin with modest support.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 0.58% to $37,251.

Technical Indicators

Bitcoin will need to move through the day’s $37,798 pivot to support a move on Monday’s high $39,495. Plenty of support would be needed, however, for Bitcoin to break out from the First Major Resistance Level at $38,734. In the event of an extended rally, Bitcoin could test resistance at $40,000. The Second Major Resistance Level sits at $40,430. 

Failure to move through the pivot would bring the First Major Support Level at $36,101 into play. In the event of an extended sell-off, Bitcoin could test support at $35,000. The Second Major Support Level sits at $35,166.

Viewing the EMAs and the 4-hourly candlesticks (below), the signal has become more bearish. Bitcoin continues to sit well below 50-day EMA. A further pullback of the 50-day EMA from the 100-day and 200-day EMAs would place downward pressure on Bitcoin.

A Bitcoin move through the 50-day EMA at $40,400 levels, would provide some support.