BTC Fear & Greed Index Stays Neutral Despite BTC Return to $23,000

Key Insights:

• It was a bullish Saturday, with BTC revisiting $23,000 for the first time since August before easing back.
• Easing FTX contagion risk continued providing support, while profit-taking and Fed policy uncertainty limited the upside.
• The Fear & Greed Index remained neutral this morning despite the BTC return to $23,000.

On Saturday, bitcoin (BTC) rose by 0.46%. Following a 7.54% rally on Friday, BTC ended the day at $22,775. Notably, BTC revisited $23,000 for the first time since August.

A mixed start to the day saw BTC fall to an early morning low of $22,427 before making a move. Steering clear of the First Major Support Level (S1) at $21,436, BTC surged to a late afternoon high of $23,353. Coming up against the First Major Resistance Level (R1) at $23,323, BTC eased back to end the day at $22,775.

Sentiment Toward an FTX Reboot Delivered a New 2023 High

On Saturday, there were no external market forces to influence, leaving sentiment toward the Fed, the Genesis bankruptcy, and the FTX reboot to provide direction.

BTC bucked the broader market trend on Saturday, with the talk of an FTX revival behind the latest upswing. However, profit-taking contributed to a late reversal from session highs, with no news events behind the pullback.

While investor sentiment toward the talk of an FTX revival remains positive, uncertainty over Fed monetary policy and the US economic outlook remained headwinds. The Genesis bankruptcy was another consideration for investors on a quiet Saturday session.

Today, investors should continue tracking the crypto news wires. Updates on FTX and Genesis need monitoring together with any chatter from regulators. In the final hour, the NASDAQ mini will also provide direction.

The Fear & Greed Index Remained Neutral on BTC Consolidation

Today, the BTC Fear & Greed Index held steady at 53/100. The Index remained within the Neutral zone, supported by the BTC consolidation of Friday’s breakout session. However, a first visit to $23,000 since August failed to drive the Index into the Greed zone.

Uncertainty toward the US economic outlook and Fed monetary policy has pegged the Index back. However, progress toward an FTX revival should continue to provide support.

Near-term, the Index would need to return to the Greed zone (55/100) to support a BTC run at $25,000. The Index last visited the Greed zone in March 2022.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.45% to $22,877. A mixed start to the day saw BTC fall to an early low of $22,714 before rising to a high of $22,971.

Technical Indicators

BTC needs to avoid the $22,852 pivot to target the First Major Resistance Level (R1) at $23,276 and the Saturday high of $23,353. A return to $23,000 would support a bullish session. However, the crypto news wires should be market-friendly to deliver a breakout.

In the event of another extended rally, BTC would likely test the Second Major Resistance Level (R2) at $23,778 and resistance at $24,000. The Third Major Resistance Level (R3) sits at $24,704.

A fall through the pivot would bring the First Major Support Level (S1) at $22,350 into play. Barring a broad-based crypto sell-off, BTC should avoid sub-$22,000 and the Second Major Support Level (S2) at $21,926. The Third Major Support Level (S3) sits at $21,000.

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 $21,072. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($21,072) would support a breakout from R1 ($23,276) to target R2 ($23,778) and $24,000. However, a fall through S1 ($22,250) would give the bears a run at S2 ($21,926) and the 50-day EMA ($21,072). A fall through the 50-day EMA would signal a shift in sentiment.