BTC Fear & Greed Index Holds Steady Despite a BTC Return to $17,500

Key Insights:

• It was a bullish Tuesday, with BTC rising by 1.51% to end the day at $17,445.
• Market sentiment toward the Fed and Inflation supported the NASDAQ Index and the broader crypto market.
• However, the Fear & Greed Index held steady at 26/100, signaling investor angst ahead of tomorrow’s US CPI Report.

On Tuesday, bitcoin (BTC) rose by 1.51%. Following a 0.26% gain on Monday, BTC ended the day at $17,445. Notably, BTC ended the day at $17,000 for the third time since December 15.

A mixed start to the day saw BTC slip to an early low of $17,155. Steering clear of the First Major Support Level (S1) at $17,072, BTC rallied to a late high of $17,506. BTC broke through the First Major Resistance Level (R1) at $17,349. The Second Major Resistance Level (R2) at $17,513 capped the upside.

Fed Chair Powell, Inflation, and the NASDAQ Support a Bullish BTC Session

On Tuesday, there were no US economic indicators to provide direction. Market sentiment toward the Fed and hopes of a soft economic landing continued to support BTC and the broader crypto market throughout the session.

Fed Chair Powell held back from discussing monetary policy ahead of tomorrow’s CPI report, which was bullish for riskier assets.

Crypto market news was also bullish, with Voyager Digital winning approval to proceed with the sale to Binance US market positive.

Today, there are no US economic indicators for investors to consider. The lack of stats will leave FOMC member chatter and the NASDAQ Index to provide direction.

Investors should also monitor the crypto news wires for events that can move the dial.

While BTC and the broader crypto market have enjoyed a bullish start to 2023, crypto market headwinds linger. The outcome of the ongoing SEC v Ripple case, regulatory risk, contagion from the crypto winter, and US investigations into Binance are areas to consider.

However, network news and and upcoming upgrades have contributed to the latest shift in sentiment.

The Fear & Greed Index Holds Steady Despite BTC Return to $17,500

Today, the BTC Fear & Greed Index held steady at 26/100. Significantly, the Index avoided a return to the Extreme Fear zone, with bets of a 25-basis point Fed interest rate hike delivering support.

However, the Index failed to move, reflecting investor uncertainty ahead of tomorrow’s US CPI Report, which will influence the Fed’s next policy decision. 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 0.06% to $17,456. A range-bound start to the day saw BTC fall to an early low of $17,436 before rising to a high of $17,506.

Technical Indicators

BTC needs to avoid the $17,369 pivot to target the First Major Resistance Level (R1) at $17,582. A move through the morning high of $17,506 would signal a bullish session. However, the crypto news wires and the NASDAQ Index should be market-friendly to support a breakout.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $17,720. The Third Major Resistance Level (R3) sits at $18,071.

A fall through the pivot would bring the First Major Support Level (S1) at $17,231 into play. Barring a risk-off-fueled sell-off, BTC should avoid sub-$17,000. The Second Major Support Level (S2) at $17,018 should limit the downside. The Third Major Support Level (S3) sits at $16,667.

An adverse crypto market event would bring sub-$16,500 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA, currently at $17,037. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A hold above S1 ($17,231) and the 50-day EMA ($17,037) would support a breakout from R1 ($17,582) to target R2 ($17,720). However, a fall through S1 ($17,231) would give the bears a run at the 50-day EMA ($17,037). A fall through the 50-day EMA would signal a shift in sentiment.