Bitcoin (BTC) Fear & Greed Index Avoids sub-30 Despite BTC Struggles

Key Insights:

• Bitcoin (BTC) fell by 2.02% on Friday to extend the losing streak to three sessions.
• US economic indicators weighed on riskier assets, with a NASDAQ 100 pullback sending bitcoin into the red
• The Bitcoin Fear & Greed Index slipped from 33/100 to 31/100, to test the upward trend towards Neutral.

On Friday, bitcoin (BTC) slid by 2.02%. Following a 0.30% decline from Thursday, bitcoin ended the day at $22,686. A third consecutive day in the red left bitcoin at sub-$23,000.

After a choppy start to the day, BTC rise to a high of $23,750 before hitting reverse.

Bitcoin broke through the First Major Resistance Level at $23,599 before sliding to a low of $22,513.

Finding support at the First Major Support Level at $22,528, BTC ended the day at $22,686.

The NASDAQ 100 sent BTC into the red as investors responded to weak US private sector PMI numbers for July.

In July, the services PMI slid from 52.7 to 47.0, according to prelim figures, reigniting fears of an economic recession. A PMI value below 50.0 indicates a sector contraction. Services account for more than 70% of the US economy.

Reversing a 1.36% gain on Thursday, the NASDAQ fell by 1.87% to end the week up 3.45%, while BTC increased by 9.10%, Monday to Friday.

Bitcoin Fear & Greed Index Slips Again on US Economy Woes

Today, the Fear & Greed Index slipped from 33/100 to 31/100, with a second consecutive decline placing question marks over the upward trend toward the Neutral zone.

Bitcoin failed to revisit $24,000 levels, with the Tesla news and the disappointing US private sector numbers weighing.

However, for the bulls, the next target is the “Neutral” zone, which starts at 46/100. The Index last sat in the “Neutral” zone on April 6, when bitcoin stood at $45,000 levels.

A move through the current week high of 34/100 would signal improved investor sentiment and a possible bitcoin move towards $30,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.22% to $22,737.

A choppy start to the day saw BTC fall to an early low of $22,565 before striking a high of $22,811.

Technical Indicators

BTC needs to move through the $22,984 pivot to target the First Major Resistance Level (R1) at $23,454 and the Friday high of $23,750.

BTC would need a bullish session to support a return to $23,000.

An extended rally would test the Second Major Resistance Level (R2) at $24,221 and resistance at $24,500. The Third Major Resistance Level (R3) sits at $25,457.

Failure to move through the pivot would bring the First Major Support Level (S1) at $22,217 into play.

Barring an extended sell-off, BTC should avoid sub-$21,500. The Second Major Support Level (S2) at $21,747 should limit the downside.

The Third Major Support Level (S3) sits at $20,509.

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 $22,275.

The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both positive BTC indicators.

The bullish cross of the 100-day EMA through the 200-day EMA would support a run at $24,500. However, BTC would need to hold above the 50-day EMA to avoid a sell-off.

Looking at the trends, BTC would need a move through the July high of $24,276 and $25,000 to target the June high of $31,956. A bullish cross of the 50-day EMA through the 200-day EMA would support a run at the June high.

From $31,200, BTC should have a clear run at the May high of $40,004.

For the bears, the June 18 low of $17,601 would be the next target, with a fall through last week’s low of $18,919 likely to test investor resilience.