Bitcoin (BTC) Fear & Greed Index Falls to sub-40 on Bitcoin Decline

Key Insights:

• Bitcoin (BTC) saw red for a second consecutive day. Despite a new July high of $24,619, BTC slipped by 0.52% to end the day at sub-$24,000.
• There were no news stories to test buyer appetite, leaving investors to lock in profits as July ends.
• The Bitcoin Fear & Greed Index slipped from 42/100 to 39/100, weighed by bitcoin’s failure to hold onto the $24,000 handle.

On Saturday, bitcoin (BTC) slipped by 0.52%. Following a 0.36% loss from Friday, bitcoin ended the day at $23,646. Bitcoin fell for the eighth time in eleven sessions.

After a range-bound morning session, BTC broke through the First Major Resistance Level at $24,310 to strike a new July high of $24,619.

However, a late crypto market reversal saw BTC slide to a late low of $23,521.

Steering clear of the First Major Support Level at $23,337, BTC wrapped up the day at $23,646.

A second consecutive day in the red came despite a bullish end to the month for the NASDAQ 100. On Friday, the NASDAQ 100 rose by 1.88% to end July up by 12.35%, the strongest monthly showing since 2020.

Bitcoin Fear & Greed Index Responds to Another Bitcoin Loss

Today, the Fear & Greed Index slipped from 42/100 to 39/100, easing back from the highest level since April 6. Significantly, the Index also fell back from the border to the neutral zone, which starts at 46/100.

April 6 was the last time the Index sat in the “Neutral” zone when bitcoin stood at $45,000.

However, despite the decline, the upward momentum toward Neutral remains in place. Movements in the coming days will likely guide the market on what to expect in the week ahead.

A return to 40/100 should support the first BTC visit to $25,000 since June 13.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.42% to $23,745. A mixed start to the day saw BTC fall to an early low of $23,531 before rising to a high of $23,813.

Technical Indicators

BTC needs to move through the $23,927 pivot to target the First Major Resistance Level (R1) at $24,337 and the Saturday high of $24,619.

BTC would need a bullish session to support a return to $24,000.

An extended rally would test the Second Major Resistance Level (R2) at $25,025. The Third Major Resistance Level (R3) sits at $26,125.

Failure to move through the pivot would bring the First Major Support Level (S1) at $23,240 into play.

Barring an extended sell-off, BTC should avoid sub-$23,000 and the Second Major Support Level (S2) at $22,829.

The Third Major Support Level (S3) sits at $21,733.

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 $22,943.

The 50-day EMA pulled away from the 200-day EMA. After a bullish cross on Saturday, the 100-day EMA broke clear of the 200-day EMA, both bullish BTC price signals.

A further widening of the 50-day EMA from the 100-day EMA would support a run at $25,000. However, holding above the 50-day EMA would be the key to an upswing.

Looking at the trends, BTC would need a move through the July high of $24,619 and $25,000 to target the June high of $31,956. A bullish cross of the 100-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. BTC needs to hold above the 50-day EMA to support the near-term bullish trend.

For the bears, the June 18 low of $17,601 would be the next target, with a fall through the July low of $18,768 likely to test investor resilience.