BTC Fear & Greed Index Hits 38 on NASDAQ and BTC Reactions to US Stats

Key Insights:

• On Friday, bitcoin (BTC) rallied by 4.66% to end the day at $21,165.
• US economic indicators and the NASDAQ Composite Index delivered the first visit to $21,000 since October 29.
• The Bitcoin Fear & Greed Index jumped from 30/100 to 38/100, supported by the BTC return to $21,000.

On Friday, bitcoin (BTC) rallied by 4.66%. Following a 0.29% gain from Thursday, BTC ended the day at $21,165. Notably, BTC ended the day at $21,000 for the first time since September 12, the day before the bearish US CPI report.

Bullish throughout the session, BTC rallied from an early low of $20,206 to an early afternoon high of $21,298. BTC broke through the day’s Major Resistance Levels before briefly falling back through the Third Major Resistance Level (R3) at $20,930. However, a bullish end to the session saw BTC wrap up the day at $21,165.

The all-important US Jobs Report delivered support.

In October, average earnings rose by 4.7% year-over-year versus 5.0% in September, with the unemployment rate up from 3.5% to 3.7%. The unemployment rate rise came despite the participation rate falling from 62.3% to 62.2% and a 261k increase in nonfarm payrolls.

Notably, the wage growth figures showed early signs of easing price pressure that could allow the Fed to take its foot off the gas.

In response, the NASDAQ Composite Index ended the day up 1.28%, with the S&P 500 gaining 1.36%.

The Fear & Greed Index Jumps to 38/100 as BTC Returns to $21,000

This morning, the Fear & Greed Index jumped from 30/100 to 38/100. After holding steady at 30/100 for three consecutive sessions, the BTC reaction to the US jobs report delivered the upside. The Index inched closer to the Neutral zone on hopes of a Fed pivot.

The Index will need to return to 40/100 and move into the neutral zone to support a BTC bearish trend reversal. A fall to sub-20/100 would signal a BTC slide to sub-$18,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 1.18% to $21,414. A bullish start to the day saw BTC rise from an early low of $21,100 to a high of $21,447.

Technical Indicators

BTC needs to avoid the $20,900 pivot to target the First Major Resistance Level (R1) at $21,573. A BTC return to $21,500 would signal a possible breakout session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $21,982 and resistance at $22,000 would likely come into play. The Third Major Resistance Level (R3) sits at $23,074.

A fall through the pivot would bring the First Major Support Level (S1) at $20,481 into play. Barring an extended sell-off, BTC should avoid sub-$20,000 and the Second Major Support Level (S2) at $19,780.

The Third Major Support Level (S3) sits at $18,706.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, BTC sat above the 100-day EMA, currently at $20,479. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA to deliver bullish signals.

A hold above the 50-day EMA ($20,479) would support a breakout from R1 ($21,573) to target R2 ($21,982). However, a fall through S1 ($20,481) and the 50-day EMA ($20,479) would bring the 100-day EMA ($20,218) into view.