BTC Fear & Greed Index Falls Deeper into the Extreme Fear Zone

Key Insights:

• On Monday, bitcoin (BTC) rose by 2.22% to end the day at $19,235.
• BTC and the broader market decoupled from the NASDAQ 100 for a third consecutive US session, as the NASDAQ succumbed to investor jitters over the Fed and the economy.
• However, the Bitcoin Fear & Greed Index fell from 21/100 to 20/100.

On Monday, bitcoin (BTC) rose by 2.22%. Reversing a 0.62% decline from Sunday, BTC ended the day at $19,235. While BTC fell short of $20,000 for the eighth consecutive session, BTC ended the day at $19,000 for the first time in three sessions.

A bearish morning saw BTC slide to a mid-morning low of $18,694 before making a move. Steering clear of the First Major Support Level (S1) at $18,579, BTC rallied to a late high of $19,333 before easing back. BTC broke through the First Major Resistance Level (R1) at $19,121 to end the day at $19,235.

It was another quiet session on the crypto news wires, with no crypto events to influence. However, BTC and the broader market continued to decouple from the NASDAQ 100 despite the lack of direction. On Monday, the NASDAQ 100 fell by 0.60%, while the crypto market cap increased by 1.94% ($17.2 billion).

Heightened volatility across the global financial markets and dollar dominance have likely contributed to the pickup in demand for crypto assets. This morning, the NASDAQ 100 Mini was up 78.75 points.

Bitcoin Fear & Greed Index Continues to Avoid Sub-20/100

Today, the Fear & Greed Index slipped from 21/100 to 20/100. The decline came despite BTC enjoying a bullish session and wrapping up the day at $19,000 for the first time in three sessions.

Investor angst over the Fed and the economic outlook likely contributed to today’s decline, with investor sentiment still finding influence from non-crypto riskier assets. However, the Index avoided sub-20, suggesting investor resilience. The Index would need to form an upward trend to give BTC a run at $25,000.

In recent weeks, avoiding sub-20/100 has been the key. The bears will be eying a fall to sub-20/100 to signal a BTC slide to sub-$18,000. By contrast, the bulls will look for an Index return to 40/100 to support a move toward $25,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.32% to $19,297. A mixed start to the day saw BTC fall to an early low of $19,213 before rising to a high of $19,374.

Technical Indicators

BTC needs to avoid the $19,087 pivot to target the First Major Resistance Level (R1) at $19,481. A BTC move through the morning high of $19,374 would support a bullish session.

In the case of an extended rally, BTC should test the Second Major Resistance Level (R2) at $19,726 and resistance at $20,000. The Third Major Resistance Level (R3) sits at $20,365.

A fall through the pivot would bring the First Major Support Level (S1) at $18,842 into play. Barring an extended sell-off, BTC should avoid sub-$18,500 and the Second Major Support Level (S2) at $18,448.

The Third Major Support Level (S3) sits at $17,809.

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 $19,568.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA, delivering mixed price signals.

A move through and R1 ($19,481) would give the bulls a run at the 100-day EMA ($19,568) and R2 ($19,726). The 200-day EMA sits at $20,149. However, a fall through the 50-day EMA ($19,227) would bring the support levels into play.