BTC Fear & Greed Index Rises to 22 on Upbeat US Earnings

Key Insights:

• On Monday, bitcoin (BTC) rose by 1.49% to end the day at $19,554.
• Upbeat corporate earnings and the UK Government’s U-turn on the mini-budget drove demand for riskier assets.
• The Bitcoin Fear & Greed Index rose from 20/100 to 22/100, with Fed fear taking a back seat.

On Monday, bitcoin (BTC) rose by 1.49%. Following a 1.03% gain on Sunday, BTC ended the day at $19,554. Notably, BTC fell short of $20,000 for the tenth consecutive session while avoiding a return to sub-$19,000 for a second session.

A bearish start to the day saw BTC slip to an early low of $19,166. Steering clear of the First Major Support Level (S1) at $19,080, BTC rallied to an early afternoon high of $19,684.

BTC broke through the First Major Resistance Level (R1) at $19,441 and the Second Major Resistance Level (R2) at $19,615. However, falling short of $20,000, BTC fell back through R2 to end the day at $19,554.

There were no crypto events to provide direction on Monday. The lack of crypto news left BTC and the broader crypto market in the hands of market risk sentiment.

On Monday, UK Chancellor Jeremy Hunt U-turned on the UK Government’s mini-budget, restoring order in the gilt market and driving demand for riskier assets. US corporate earnings also provided support. Bank of America (BAC) and Bank of New York Mellon (BK) released positive earnings results.

The upswing in interest rates led to a boost in net interest income. The NASDAQ 100 led the way, rallying by 3.43%, with the Dow and S&P 500 seeing gains of 1.86% and 2.65%, respectively. This morning, the NASDAQ Mini was up 87.5 points.

The Fear & Greed Index Inches Higher

Today, the Fear & Greed Index rose from 20/100 to 22/100. The increase was modest, with BTC falling short of $20,000 for a tenth consecutive session. While the UK government and US corporate earnings delivered support, Fed Fear and economic uncertainty continued to leave the Index in the Extreme Fear zone.

For the bulls, the Index will need to continue avoiding sub-20/100 to support a shift in sentiment. However, 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 0.18% to $19,590. A mixed start to the day saw BTC fall to an early low of $19,519 before rising to a high of $19,621.

Technical Indicators

BTC needs to avoid the $19,468 pivot to target the First Major Resistance Level (R1) at $19,770. A BTC move through the Monday high of $19,684 would signal a bullish session. However, following the upbeat earnings results on Monday, more of the same would support another breakout session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $19,986 and $20,000 would likely come into play. The Third Major Resistance Level (R3) sits at $20,504.

A fall through the pivot would bring the First Major Support Level (S1) at $19,252 into play. Barring an extended sell-off, BTC should avoid sub-$19,000 and the Second Major Support Level (S2) at $18,950.

The Third Major Support Level (S3) sits at $18,432.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $19,399.

The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA to deliver bullish signals.

BTC needs to move through the 200-day EMA ($19,632) and R1 ($19,770) to target R2 ($19,986) and $20,000. However, a fall through the 100-day EMA ($19,399) would bring the 50-day EMA ($19,332) and S1 ($19,252) into view.