BTC Fear & Greed Index Slides to 33 as BTC Slides to Sub-$21,000

Key Insights:

• On Sunday, bitcoin (BTC) fell by 1.79%, ending the week up 1.38% to $20,932.
• Profit-taking and the NASDAQ mini left BTC and the broader crypto market in the red for the session.
• The Bitcoin Fear & Greed Index slid from 40/100 to 33/100, weighed by the BTC return to sub-$21,000.

On Sunday, bitcoin (BTC) fell by 1.79%. Reversing a 0.70% gain from Saturday, BTC ended the week up 1.38% to $20,932. Notably, BTC saw a three-day winning streak end. BTC wrapped up the day at sub-$21,000 for the first time in three sessions.

A mixed start to the day saw BTC rise to an early high of $21,378. Coming up short of the First Major Resistance Level (R1) at $21,489, BTC slid to a final-hour low of $20,900. BTC fell through the First Major Support Level (S1) at $21,119. However, finding support at the Second Major Support Level (S2) at $20,924, BTC ended the day at $20,932.

A lack of market news left investors to lock in profits ahead of another busy week. In the final hour, the NASDAQ mini fueled a sharper pullback. This morning, the NASDAQ mini was down 38.75 points, recovering from heavier losses.

With the market focus turning to the Fed’s December policy decision, correlation with the NASDAQ Composite Index will remain in place. A lack of US economic indicators would likely see BTC take its cues from the NASDAQ Composite ahead of FOMC member commentary.

The Fear & Greed Index Slides to 33/100 on BTC Return to Sub-$21,000

This morning, the Fear & Greed Index slid from 40/100 to 33/100. Reversing the weekend move from 30/100 to 40/100, the BTC return to sub-$21,000 weighed on investor sentiment. The pullback reflected uncertainty over the prospects of a December Fed pivot.

The Index would need to avoid sub-30/100 to support a return to 40 and a move into the neutral zone. However, a fall to sub-20/100 would signal a slide to sub-$18,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.46% to $21,029. A mixed start to the day saw BTC fall to an early low of $20,846 before rising to a high of $21,083.

Technical Indicators

BTC needs to move through the $21,070 pivot to target the First Major Resistance Level (R1) at $21,240 and the Sunday high of $21,378. A return to $21,200 would signal a possible breakout session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $21,548 and resistance at $22,000 would likely come into play. The Third Major Resistance Level (R3) sits at $22,026.

Failure to move through the pivot would leave the First Major Support Level (S1) at $20,762 in play. Barring an extended sell-off, BTC should avoid sub-$20,500. The Second Major Support Level (S2) at $20,592 should limit the downside.

The Third Major Support Level (S3) sits at $20,114.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 50-day EMA, currently at $20,767. 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 ($20,767) would support a breakout from R1 ($21,240) to target R2 ($21,548) and $22,000. However, a fall through the 50-day EMA ($20,767) and S1 ($21,762) would bring S2 ($20,592) into view.