BTC Fear & Greed Index Avoids Extreme Fear on Binance Sentiment

Key Insights:

• On Sunday, bitcoin (BTC) slipped by 0.23% to end the week with a 2.07% loss.
• Market fears of a Binance liquidity crunch continued to ease, while regulatory risk and recession fears pegged BTC back at sub-$17.000.
• The Fear & Greed Index rose from 26/100 to 29/100 on easing fears of a Binance liquidity crunch.

On Sunday, bitcoin (BTC) fell by 0.23%. Partially reversing a 0.91% gain from Saturday, BTC ended the week down 2.07% to $16,755. Notably, BTC fell short of $17,000 for the second time since November 29.

A mixed start to the day saw BTC fall to a late morning low of $16,678. Steering clear of the First Major Support Level (S1) at $16,664, BTC rose to a late high of $16,872. BTC broke through the First Major Resistance Level (R1) at $16,866 before falling to sub-$16,800 and into the red.

Binance Liquidity Crunch Fears Eased While Recession Jitters Lingered

Investor jitters over a Binance liquidity crunch eased on Sunday, supporting another bulling binance coin (BNB) session.

On Saturday, the crypto community addressed elements of the latest FUD campaign that targeted Binance. A shift in sentiment delivered market order over the weekend, with BTC avoiding sub-$16,000.

However, investor jitters over a global economic recession and regulatory uncertainty left BTC in a tight range over the weekend. The collapse of FTX has led to calls for stringent crypto regulations on top of materially affecting investor confidence.

A crypto regulatory framework supporting innovation while protecting investors from bad players would likely deliver crypto market support. However, regulation by enforcement would continue to weigh on sentiment.

Today, there are no US economic indicators to influence, leaving BTC in the hands of the NASDAQ Index and the crypto news wires. Market sentiment toward Fed monetary policy will also need consideration. Recent US economic indicators have questioned the Fed’s hawkish policy outlook.

A less hawkish Fed and an economic soft landing would support the NASDAQ and the broader crypto market. This morning, the NASDAQ mini was up 28.75 points to provide early support.

The Fear & Greed Index Rises to 29/100 Despite BTC Loss

Today, the Fear & Greed Index rose from 26/100 to 29/100. The increase came despite a bearish BTC session and BTC failing to revisit $17,000.

Easing fears of a Binance liquidity crunch and a possible shift in sentiment towards Fed monetary policy supported the upswing. However, crypto headwinds continued to leave the Index within the Fear zone.

Avoiding sub-20/100 remains the key near-term. The bulls will need to target the pre-FTX collapse November 6 high of 40/100 to support a BTC run at $20,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.26% to $16,798. A range-bound start to the day saw BTC fall to a low of $16,739 before rising to a high of $16,825.

Technical Indicators

BTC needs to avoid the $16,768 pivot to target the First Major Resistance Level (R1) at $16,859 and the Sunday high of $16,872. A move through the Sunday high would signal a bullish session. However, the NASDAQ Index will need to support a breakout session.

In the event of an extended rally, BTC would likely break out from the Second Major Resistance Level (R2) at $16,962 to bring $17,000 into view. The Third Major Resistance Level (R3) sits at $17,156.

A fall through the pivot would bring the First Major Support Level (S1) at $16,665 into play. Barring a risk-off-fueled sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,574 should limit the downside. The Third Major Support Level (S3) sits at $16,380. An adverse crypto market event would bring sub-$16,000 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, BTC sat below the 50-day EMA, currently at $17,073. After Sunday’s bearish cross, the 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($16,859) would support a run at R2 ($16,962) and the 50-day EMA ($17,073). However, failure to move through the 50-day EMA would leave BTC under pressure.