Bitcoin (BTC) Fear & Greed Index Hits Highest Level Since May 7

Key Insights:

• It was a bullish session on Thursday, with bitcoin (BTC) rallying by 5.19% to end the day at $21,612.
• Recession fears took a back seat as the global financial markets responded further to the Fed meeting minutes from Wednesday.
• The Bitcoin Fear & Greed Index rose to 20/100 in response.

On Thursday, bitcoin (BTC) rallied by 5.19%. Following a 1.91% gain from Wednesday, bitcoin ended the day at $21,612.

A bearish morning saw BTC fall to a low of $20,243.

Steering clear of the First Major Support Level at $19,982, BTC rallied to a high of $21,840.

Bitcoin broke through the First Major Resistance Level at $20,875 and the Second Major Resistance Level at $21,196.

Market reaction to the Fed meeting minutes from late Wednesday delivered NASDAQ 100 support. On Thursday, the NASDAQ 100 rallied by 2.28%. The bullish sentiment spilled over to the crypto market,

The FOMC meeting minutes highlighted the risk of rate hikes having a ‘larger-than-expected effect on economic growth.’ Prior to the minutes, the markets had priced in a 75-basis point rate hike for July. However, the minutes revealed that participants judged a 50 or 75 basis point increase as appropriate.

Today, June nonfarm payroll figures for June from the US will draw plenty of interest. A less hawkish Fed and upbeat labor market numbers could deliver another crypto boost.

At the time of writing, the NASDAQ 100 Mini was down by 38 points.

Bitcoin Fear & Greed Index Jumps to 20/100

This morning, the Fear & Greed Index rose from 18/100 to 20/100. A shift in market sentiment, in response to the Fed minutes, supported a move towards the “Fear” zone.

Hitting the highest level since a May 7, 23/100, 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.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.07% to $21,627.

Technical Indicators

BTC needs to avoid the $21,232 pivot to test resistance at $22,000 and the First Major Resistance Level (R1) at $22,221.

BTC would need NASDAQ 100 Mini support to breakout from the Thursday high of $21,840.

An extended rally would test the Second Major Resistance Level (R2) at $22,827 and resistance at $23,000. The Third Major Resistance Level (R3) sits at $24,426.

A fall through the pivot would bring the First Major Support Level (S1) at $20,621 into play.

Barring an extended sell-off, BTC should avoid sub-$20,000 and the Second Major Support Level (S2) at $19,636.

The Third Major Support Level (S3) sits at $18,038.

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 $20,690.

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.