Bitcoin (BTC) Eyes a First Visit to $22,000 Since June 16
- It was a bullish Saturday session, with bitcoin (BTC) rising by 1.20% to extend the winning streak to three sessions.
- Investors put recession fears aside, with a pickup in risk appetite on Friday spilling over to the weekend.
- Technical indicators are bullish, with bitcoin sitting above the 50-day EMA.
On Saturday, bitcoin (BTC) rose by 1.20%. Following a 0.57% gain on Friday, bitcoin ended the day at $21,474. Bitcoin logged a three-day winning streak for a second time this week.
A bullish start to the day saw bitcoin rise to a high of $21,587 before hitting reverse.
Coming within range of the First Major Resistance Level at $21,593, bitcoin slid to a low of $20,902.
Bitcoin found support at $21,000 to bounce back and end the day in positive territory.
A pickup in investor risk appetite delivered bitcoin with support on Saturday. On Friday, the NASDAQ 100 rallied by 3.34%, driving demand for cryptos.
We expect the correlation between the NASDAQ 100 and bitcoin to remain firmly in place on Monday.
Bitcoin Fear & Greed Index
This morning, the Fear & Greed Index held steady at 14/100.
While remaining deep within the “Extreme Fear” zone, the Index continued its recovery from a June 19 low of 6/100. At 14/100, the Index reflects investor fears of another bitcoin reversal, with resistance at $22,000 proving to be the key.
A bitcoin move through to 25/100 and into the “Fear Zone” would support a bitcoin run at $30,000. The Index last visited the “Fear Zone” on May 5.
Downside risks for bitcoin and the broader market remain, with Fed monetary policy, fears of a recession, and a likely shift in the regulatory landscape the current crypto headwinds.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up by 0.95% to $21,679.
A mixed start to the day saw bitcoin fall to an early low of $21,276 before striking a high of $21,750.
Bitcoin came up against the First Major Resistance Level at $21,739 before easing back.
Avoiding the $21,320 pivot would leave the First Major Resistance Level at $21,739 in play.
BTC would need plenty of support to avoid a fallback to sub-$21,500.
An extended rally would test the Second Major Resistance Level at $22,007 and resistance at $22,500. The Third Major Resistance Level sits at $22,691.
A fall through the pivot would bring the First Major Support Level at $21,054 into play. In case of another extended sell-off, bitcoin could test the Second Major Support Level at $20,636 and support at $20,500.
The Third Major Support Level sits at $19,951.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat above the 50-day EMA, currently at $21,262.
The 50-day EMA narrowed to the 100-day EMA. The 100-day EMA eased back from the 100-day EMA, bitcoin price negative.
A return to $22,000 would bring the 100-day EMA, currently at $22,653, into play.
In case of a fall through the 50-day EMA, bitcoin would test the Major Support Levels.