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Bitcoin (BTC) Fear & Greed Index Forms Upward Trend by Hitting 24/100

By:
Bob Mason
Published: Jul 9, 2022, 00:48 UTC

It was a choppy Friday session, with resistance at $22,000 pinning bitcoin back. The Fear & Greed Index continues to form an upward trend, however

BTC finds support

Key Insights:

  • It was a choppy session on Friday, with bitcoin (BTC) falling into the red in the final hour of the session.
  • Economic data from the US eased recession jitters, with the NASDAQ managing to avoid the red to deliver support.
  • The Bitcoin Fear & Greed Index rose to 24/100 despite the choppy Friday session.

On Friday, bitcoin (BTC) slipped by 0.09%. Following a 5.19% rally from Wednesday, BTC ended the day at $21,593.

A bullish start to the day saw BTC break through the First Major Resistance Level at $22,221 to strike a high of $22,377

Coming up short of $22,500, BTC slid to a low of $21,183 as investors responded to the US nonfarm payroll figures for June.

However, steering clear of the First Major Support Level at $20,621, bitcoin bounced back to test resistance at $22,000 before easing back.

In June, US nonfarm payrolls jumped by 372k, following a 384k rise in May. The sharp increase eased fears of an imminent recession. However, the June figure also gives the Fed the wiggle room to deliver another 75-basis point rate hike this month.

Following the Thursday 2.28% rally, the NASDAQ rose by 0.12% to end the week up 4.6%. The positive end to the week delivered BTC support before a final-hour pullback.

BTC - NASDAQ
BTC-NASDAQ 090722 5 Minute Chart

Bitcoin Fear & Greed Index Jumps to 24/100

This morning, the Fear & Greed Index rose from 20/100 to 24/100. A shift in market sentiment, in response to the Fed minutes, continued to support the move towards the “Fear” zone that begins at 25/100.

Index on the edge of the Fear zone
Fear & Greed 090722

Hitting the highest level since a May 5, 27/100, a continued upward trend would indicate a marked shift in investor sentiment.

For the bulls, avoiding a fall back to sub-18/100 and a move into the “Fear” zone at 25/100 will now be the key.

The Index last sat in the “Fear” zone on May 5, when bitcoin stood at $36,630.

BTC Fear & Greed Index
Fear & Greed Chart 090722

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.20% to $21,637.

BTC finds early support
BTCUSD 090722 Daily Chart

Technical Indicators

BTC needs to move through the $21,719 pivot to target the First Major Resistance Level (R1) at $22,250 and the Friday high of $22,377.

BTC would need a bullish session to support to return to $22,000.

An extended rally would test the Second Major Resistance Level (R2) at $22,910 and resistance at $23,000. The Third Major Resistance Level (R3) sits at $24,106.

Failure to move through the pivot would bring the First Major Support Level (S1) at $21,059 into play.

Barring an extended sell-off, BTC should avoid sub-$20,500, with the Second Major Support Level (S2) at $20,527 likely to limit the downside.

The Third Major Support Level (S3) sits at $19,330.

BTC pivot the key
BTCUSD 090722 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $20, 816.

The 50-day EMA closed in on the 100-day EMA. The 100-day EMA narrowed to the 100-day EMA; bitcoin price positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $23,000.

However, a retreat through the 100-day EMA would test support at $20,000.

BTC Fear & Greed Index bullish
BTCUSD 090722 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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