Bitcoin (BTC) Falls for an Eighth Day as the Focus Shifts to the Fed

Key Insights:

• On Tuesday, bitcoin (BTC) followed Monday’s 15.5% tumble with a 1.58% loss to log an eighth consecutive day in the red.
• A bearish morning saw BTC slide to a new current-year low of $20,838 before ending the day at $22,000 levels, with market angst over the Fed weighing.
• Technical indicators remain bearish, with bitcoin sitting well below the 50-day EMA.

On Tuesday, bitcoin (BTC) fell by 1.58%. Following a 15.5% tumble from the previous day, bitcoin ended the day at $22,118. A late broad-based crypto rally reduced the deficit for the day.

A bearish start to the day saw bitcoin slide to an early and a new current-year low of $20,838.

Steering clear of the First Major Support Level at $20,675, bitcoin struck a day high of $23,214 before briefly sliding back to sub-$22,000.

It was an eighth consecutive day in the red, with the bitcoin correlation with the NASDAQ remaining intact.

Market angst over inflation, the risk of a recession, and Fed monetary policy continued to weigh.

While the Dow and the S&P500 saw further declines on Tuesday, the NASDAQ eked out a 0.18% gain to buck the broader market trend.

The Bitcoin Fear & Greed Index Falls to Match the May Low of 8/100

Today, the Fear & Greed Index fell from 08/100 to 7/100. Am eighth day in the red and a bitcoin visit to sub-$21,000 levels sent the Index to a new current-year low.

Today’s fall to 7/100 and deeper into the “Extreme Fear” zone reflected investor sentiment towards Wednesday’s Fed monetary policy decision. The Index last visited the “Fear” zone on May 5.

The crypto market and the NASDAQ 100 saw the correlation remain intact. Bitcoin and the broader market gave up gains late in the day, with the bitcoin pullback coming after the US close.

At the time of writing, the NASDAQ 100 Mini was up 73 points, pointing to a modest rise at the US market open. The modest rise had limited influence on bitcoin and the broader market.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down by 0.16% to 22,084.

Technical Indicators

Avoiding the $22,057 pivot would bring the First Major Resistance Level at $23,300 into play.

Sentiment across the global financial markets would need to improve to support a breakout from $22,500.

An extended rally would test the Second Major Resistance Level at $24,428.

A fall through the pivot would bring the First Major Support Level at $20,892 in play. In the event of another extended sell-off, bitcoin could test the Second Major Support Level at $19,677 before any recovery.

Movement late in the day will hinge on the Fed’s monetary policy decision and projections.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $26,692. This morning, the 50-day EMA slid back from the 100-day EMA. The 100-day EMA fell back from the 100-day EMA, bitcoin price negative.

A return to $25,000 would give the bulls a run at the 50-day EMA and $27,500.