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

Key Insights:

• Bitcoin (BTC) fell by 1.92% on Sunday to end a four-day winning streak.
• There were no news stories to lead to a pullback suggesting lingering investor uncertainty over Fed monetary policy and the economic outlook as contributors.
• The Bitcoin Fear & Greed Index slipped from 24/100 to 21/100, reflecting the uncertainty amidst improving market conditions.

On Sunday, bitcoin (BTC) fell by 1.92%. Reversing a 1.79% gain from Saturday, BTC ended the week down by 0.26% to $20,793. The pullback ended a four-day winning streak, with investor uncertainty over Fed monetary policy and the economic outlook lingering.

A bullish start to the day saw BTC rise to a high of $21,658. Coming within range of the First Major Resistance Level at $21,689, BTC fell to a low of $20,753.

Steering clear of the First Major Support Level at $20,595, BTC found modest support to end the day at $20,793.

With investors looking to the week ahead, profit taking left BTC in the red for the session and the week.

Going into the Monday session, the NASDAQ 100 Mini will provide bitcoin and the broader market with direction, with no economic indicators for the markets to consider.

This morning, the NASDAQ 100 Mini was up by 36 points to provide early support.

Bitcoin Fear & Greed Index Slips on Bearish Bitcoin Session

Today, the Fear & Greed Index declined from 24/100 to 20/100. The modest decline came in response to bitcoin seeing its four-day winning streak end.

However, avoiding sub-20/100 was the key, with the Index hovering close to the “Fear” zone.

The bulls will look for a return to the “Fear” zone at 25/100, last visited on May 5, to support a BTC run at $25,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.85% to $20,969.

A mixed start to the day saw BTC fall to an early low of $20,761 before rising to a high of $21,002.

Technical Indicators

BTC needs to move through the $21,070 pivot to target the First Major Resistance Level (R1) at $21,385 and the Sunday high of $21,658.

BTC would need a bullish session to support a breakout from $21,500.

An extended rally would test the Second Major Resistance Level (R2) at $21,971 and resistance at $22,500. The Third Major Resistance Level (R3) sits at $22,878.

Failure to move through the pivot would bring the First Major Support Level (S1) at $20,480 into play.

Barring an extended sell-off, BTC should avoid sub-$20,000, with the Second Major Support Level (S2) at $20,162 to limit the downside.

The Third Major Support Level (S3) sits at $19,258.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $20,725.

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

A bullish cross of the 50-day EMA through the 100-day EMA would bring $22,000 into play.

On a trend analysis basis, bitcoin would need a move through a May 30 high of $32,503 to target the March 28 high of $48,192. Near-term, resistance at $25,000 will likely be the first test should the upward trend resume.

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.