Bitcoin (BTC) Fear & Greed Index Climbs on Bitcoin Visit to $24,000

Key Insights:

• Bitcoin (BTC) fell by 0.76% on Wednesday, the loss coming despite a brief visit to $24,000.
• News of Tesla Inc. (TSLA) selling 75% of its BTC holdings weighed on bitcoin and the broader crypto market.
• The Bitcoin Fear & Greed Index increased from 31/100 to 34/100, the upward trend supporting a move through to the Neutral zone.

On Wednesday, bitcoin (BTC) fell by 0.76%. Partially reversing a 4.25% rally from Tuesday, bitcoin ended the day at $23,223. Bitcoin fell for just the second time in eight sessions.

After a choppy start to the day, BTC rallied to a mid-afternoon high of $24,276 before hitting reverse.

Coming up against the First Major Resistance Level at $24,267, BTC slid to a low of $22,923 before returning to $23,200 levels.

The NASDAQ 100 delivered BTC support through the US session. Following a 3.11% rally on Tuesday, the NASDAQ rose by 1.58% on Wednesday.

However, a post-US market close crypto sell-off did the damage. News of Tesla Inc. (TSLA) offloading 75% of its bitcoin holdings weighed on BTC late in the day.

This morning, the NASDAQ 100 Mini was down by 37 points.

Bitcoin Fear & Greed Index Inches Higher

Today, the Fear & Greed Index increased from 31/100 to 34/100, with the upward trend supporting BTC and an Index return to the Fear zone.

A bitcoin return to $24,000, for the first time since the June 13 sell-off, reflected a further improvement in investor sentiment. The improved investor sentiment supported the Index’s move out of the Extreme Fear zone earlier this week.

This morning, the Index hit its highest level since 34/100 on April 10, when bitcoin stood at $40,111.

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.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.16% to $23,185.

A mixed start to the day saw BTC rise to an early high of $23,386 before falling to a low of $23,136.

Technical Indicators

BTC needs to move through the $23,475 pivot to target the First Major Resistance Level (R1) at $24,026 and the Wednesday high of $24,276.

BTC would need a bullish session to support a breakout from $23,500.

An extended rally would test the Second Major Resistance Level (R2) at $24,828 and resistance at $25,000. The Third Major Resistance Level (R3) sits at $26,180.

Failure to move through the pivot would bring the First Major Support Level (S1) at $22,674 into play.

Barring an extended sell-off, BTC should avoid sub-$22,000. The Second Major Support Level (S2) at $22,123 should limit the downside.

The Third Major Support Level (S3) sits at $20,768.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 200-day EMA, currently at $22,021.

The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both positive BTC indicators.

A bullish cross of the 50-day EMA through the 200-day EMA would bring $30,000 into play. However, BTC will need to avoid a fall through the 200-day EMA to avoid a sell-off.

Looking at the trends, BTC would need a move through the new 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.