Bitcoin (BTC) Fear & Greed Index Slides on BTC Pullback

Key Insights:

• Bitcoin (BTC) saw red for a third consecutive day, placing further downward pressure on the Bitcoin Fear & Greed Index.
• A lack of crypto news stories left US recessionary fears to test investor appetite.
• The Bitcoin Fear & Greed Index fell from 39/100 to 32/100, also weighed by bitcoin’s failure to hold onto the $24,000 handle.

On Sunday, bitcoin (BTC) fell by 1.43%. Following a 0.52% decline on Saturday, BTC ended July up 17.42% to $23,308. Bitcoin fell for the ninth time in twelve sessions.

Bitcoin was range-bound through most of the Sunday session. However, a late rally saw BTC strike a high of $24,187. Falling short of the First Major Resistance Level at $24,336 and Saturday’s July high of $24,619, BTC slid to a low of $23,243.

Coming into the range of the First Major Support Level at $23,238, BTC wrapped up the day at $23,308.

A third 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 12.35%, the strongest monthly showing since 2020.

This morning, the NASDAQ 100 Mini was down 54 points.

Bitcoin Fear & Greed Index Falls in Bearish end to July

Today, the Fear & Greed Index fell from 39/100 to 33/100, falling further from the highest level since April 6. Significantly, the Index also fell further 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.

The latest decline reversed the recent upward trend that saw the Index hit a July high of 42/100.

For the bulls, an Index return to 40/100 should support Bitcoin’s first visit to $25,000 since June 13.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.33% to $23,385. A mixed start to the day saw BTC fall to an early low of $23,269 before rising to a high of $23,396.

Technical Indicators

BTC needs to move through the $23,578 pivot to target the First Major Resistance Level (R1) at $23,916 and the Sunday high of $24,187.

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 $24,522. The Third Major Resistance Level (R3) sits at $25,467.

Failure to move through the pivot would bring the First Major Support Level (S1) at $22,972 into play.

Barring an extended sell-off, BTC should avoid sub-$22,500. The Second Major Support Level (S2) at $22,634 should limit the downside.

The Third Major Support Level (S3) sits at $21,691.

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 $23,100.

The 50-day 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 another upswing.

A fall through the 50-day EMA and S1 would bring S2 and the 100-day EMA, currently at $22,572, into play.

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.