Bitcoin (BTC) Fear & Greed Index Holds Steady Despite Tesla Offload

Key Insights:

• Bitcoin (BTC) fell by 0.30% on Thursday. A choppy session saw BTC fall to sub-$23,000 before finding support.
• News of Tesla Inc. (TSLA) selling 75% of its BTC holdings continued to weigh on bitcoin, which bucked the broader market trend.
• The Bitcoin Fear & Greed Index slipped from 34/100 to 33/100, the upward trend towards Neutral still in place.

On Thursday, bitcoin (BTC) fell by 0.30%. Following a 0.76% decline on Wednesday, bitcoin ended the day at $23,154. Bitcoin fell for just the third time in nine sessions.

A mixed start to the day saw BTC rise to a high of $23,420 before hitting reverse.

Falling short of $24,000 and the First Major Resistance Level at $24,025, BTC slid to an early afternoon low of $22,349.

BTC fell through the First Major Support Level at $22,674 before a partial recovery to $23,154.

The NASDAQ 100 delivered BTC support through the US session. Following a 1.58% gain on Wednesday, the NASDAQ rose by 1.36% on Thursday.

However, another post-US session pullback left BTC in the red for the day. News of Tesla Inc. (TSLA) offloading 75% of its bitcoin holdings continued to test buyer support.

This morning, the NASDAQ 100 Mini was down by 92.5 points.

Bitcoin Fear & Greed Index Slips on Tesla Action

Today, the Fear & Greed Index slipped from 34/100 to 33/100, with the upward trend toward the Neutral zone still in play.

A bitcoin decline to sub-$23,000 failed to materially influence the Index, with news of the Tesla (TSLA) BTC sell-off a past event.

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 up 0.53% to $23,277.

Technical Indicators

BTC needs to avoid the $22,972 pivot to target the First Major Resistance Level (R1) at $23,599.

BTC would need a bullish session to support a breakout from the Thursday high of $23,420.

An extended rally would test the Second Major Resistance Level (R2) at $24,048 and resistance at $24,500. The Third Major Resistance Level (R3) sits at $25,116.

A fall through the pivot would bring the First Major Support Level (S1) at $22,528 into play.

Barring an extended sell-off, BTC should avoid sub-$21,500. The Second Major Support Level (S2) at $21,907 should limit the downside.

The Third Major Support Level (S3) sits at $20,832.

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 $22,130.

The 50-day EMA crossed through the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both positive BTC indicators.

The bullish cross of the 50-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.