BTC Fear & Greed Index Holds on BTC and NASDAQ Index Support

Key Insights:

• On Monday, bitcoin (BTC) rose by 0.70%. However, while ending a three-day losing streak, BTC revisited sub-$17,000 for the first time in four sessions.
• Binance news sent BTC and the broader crypto market into the red before the NASDAQ Index supported an afternoon recovery.
• The Fear & Greed Index held steady at 27/100, supported by the BTC rebound.

On Monday, bitcoin (BTC) rose by 0.70%. Reversing a 0.13% loss from Sunday, BTC ended the day at $17,229. Notably, BTC revisited sub-$17,000 for the first time in four sessions while ending a three-day losing streak.

A bearish start to the day saw BTC slide to an early low of $16,879. BTC fell through the First Major Support Level (S1) at $16,967 before finding support. Recovering from the morning loss, BTC rallied to a final-hour high of $17,263. However, coming up short of the First Major Resistance Level (R1) at $17,378, BTC eased back to end the day at $17,229.

Binance and the NASDAQ Index Deliver a Choppy BTC Session

On Monday, news of unusual account activity on the Binance exchange weighed on investor sentiment. However, while Binance announced that the unusual activity was just normal market behavior, reports of US authorities planning to file charges for financial crimes also tested investor resilience.

However, the NASDAQ Index delivered crypto market support. Hopes of softer US inflation figures to support a Fed pivot drove demand for riskier assets. On Monday, the NASDAQ Index rose by 1.26%, with the S&P500 gaining 1.43% to provide crypto market support.

Today, the US CPI report will be in the spotlight, with softer inflation likely to deliver a bullish NASDAQ Index and crypto session. However, recession fears, news updates on the investigations into Binance, and updates from the SEC v Ripple case will also influence.

This morning, the NASDAQ mini was down 4 points.

The Fear & Greed Index Holds Steady on BTC Recovery from Sub-$17,000

Today, the BTC Fear & Greed Index held steady at 27/100. Significantly, the Index avoided a fall back into the Extreme Fear zone despite the Binance news and BTC revisiting sub-$17,000.

A rebound from heavy losses early in the session, supported by the NASDAQ Index and likely prevented a fall into the Extreme Fear zone.

However, today’s US CPI report and tomorrow’s Fed interest rate decision will likely move the dial. While softer inflation figures would support an Index move towards 30/100, recession fears could resurface, with the Fed unlikely to hit pause on lifting rates to bring inflation to target.

Near-term, 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 down 0.30% to $17,177. A mixed start to the day saw BTC rise to an early high of $17,253 before falling to a low of $17,160.

Technical Indicators

BTC needs to avoid the $17,124 pivot to target the First Major Resistance Level (R1) at $17,368. A move through the Monday high of $17,263 would signal a bullish session.

In the event of an extended rally, BTC would likely break out from the Second Major Resistance Level (R2) at $17,508 to bring $18,000 into view. The Third Major Resistance Level (R3) sits at $17,892.

A fall through the pivot would bring the First Major Support Level (S1) at $16,984 into play. Barring an extended sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,740 should limit the downside. The Third Major Support Level (S3) sits at $16,356.

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 $17,011. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through the 200-day ($17,283) would support a breakout from R1 ($17,368) to target R2 ($17,508). However, a fall through the 50-day EMA ($17,058) would bring the 100-day EMA ($17,011) and S1 ($16,984) into view.