BTC Fear & Greed Index Slides Despite a Bullish BTC Monday Session

Key Insights:

• On Monday, bitcoin (BTC) rallied by 2.96% to end the session at $19,632.
• US economic indicators provided riskier assets with much-needed support, with ISM Manufacturing sub-components easing bets of a hawkish Fed move.
• Despite the bullish session, the Bitcoin Fear & Greed Index fell from 24/100 to 20/100.

On Monday, bitcoin (BTC) rallied by 2.96%. Reversing a 1.29% loss from Sunday, BTC ended the day at $19,632. Despite the bullish session, BTC came up short of $20,000 for a third consecutive session.

A bearish start to the session saw BTC slide to an early low of $18,980. Steering clear of the First Major Support Level (S1) at $18,875, BTC rallied to a final hour high of $19,708.

BTC broke through the First Major Resistance Level (R1) at $19,328 and the Second Major Resistance Level (R2) at $19,588 to end the day at $19,632.

Fed fear subsided on Monday, with the US ISM Manufacturing PMI and sub-components easing bets of another 75-basis point rate hike.

In September, the ISM Manufacturing PMI fell from 52.8 to 50.9. While the sector continued to expand, the employment and new order sub-components eased bets of another 75-basis point Fed rate hike.

The Employment Index fell from 54.2 to 48.7, with the New Orders Index sliding from 51.3 to 47.1. In response to the numbers, the NASDAQ 100 rallied by 2.27%. This morning, the NASDAQ 100 Mini was up 56.25 points.

Bitcoin Fear & Greed Index Holds Slides Despite Bullish Session

Today, the Fear & Greed Index fell from 24/100 to 20/100. A bullish BTC session failed to shift investor sentiment, with the Index falling deeper into the Extreme Fear zone. BTC fell short of $20,000 for a third consecutive session, which likely weighed on investor sentiment.

This morning, a bullish start to the session for the NASDAQ 100 Mini also failed to deliver a boost. However, the Index continued to avoid sub-20/100.

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 down 0.57% to $19,074.

A choppy start to the day saw BTC strike an early high of $19,730 before falling to a low of $19,502.

Technical Indicators

BTC needs to avoid the $19,440 pivot to target the First Major Resistance Level (R1) at $19,900 and $20,000. A BTC move through the morning high of $19,730 would signal a bullish session.

In the case of another extended rally, BTC should test the Second Major Resistance Level (R2) at $20,168 and resistance at $20,500. The Third Major Resistance Level (R3) sits at $20,896.

A fall through the pivot would bring the First Major Support Level (S1) at $19,172 into play. Barring an extended sell-off, BTC should avoid sub-$18,500. The Second Major Support Level (S2) at $18,712 will likely limit the downside.

The Third Major Support Level (S3) sits at $17,984.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $19,465.

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

A move through the 200-day ($19,891) EMA and R1 ($19,900) would give the bulls a run at R2 ($20,168) and $20,500. However, a fall through the 100-day EMA ($19,465) and the 50-day EMA ($19,347) would give the bears a run at the Major Support Levels.