Bitcoin (BTC) is on the Move as the NASDAQ 100 Mini Flashes Green

It’s been a choppy few days for Bitcoin (BTC) and the broader crypto market. Another tech stock rout on Thursday saw Bitcoin slide back to test support at $36,200 before bouncing back.

On Thursday, the NASDAQ 100 tumbled by 3.74% before an after-hours rebound. Bitcoin’s price movements tracked those of the NASDAQ 100 through the day, with the after-hours rebound supporting the crypto market late Thursday and through this morning.

Bitcoin ended Thursday up 1.11% after having been down by as much as 1.76% during the day.

Recovering from $36,200 levels from Thursday, Bitcoin has struck a current-day high of $38,275 this morning.

Elsewhere, it has also been a bullish morning, with Ethereum (ETH) and Solana (SOL) rallying by 5.06% and by 3.93% to lead the way.

A NASDAQ 100 Bounce back Supports a Bitcoin Rebound

At the time of writing, the NASDAQ 100 mini was up by 215.25 points delivering crypto market support. After briefly decoupling mid-week, IMF concerns over the interconnectedness between cryptos and the U.S equity markets were once more justified.

The Bitcoin Fear & Greed Index

In spite of Thursday’s bounce back and this morning’s gains, the Bitcoin Fear & Greed Index has fallen back from a recovery to 28/100 on Tuesday. At the time of writing, the Index stood at 20/100, which was unchanged from Thursday. Sitting in the red, the Index reflects an extreme fear of further downside.

Holding well above a 23^rd January 11/100, however, a move out of the red zone to 30/100 remains the key move. Currently sitting in the red zone, the index had last been out of the red zone on 28^th December, when the Index had stood at 41/100.

Key Drivers for the Day Ahead

With the NASDAQ 100 continuing to pull the Bitcoin strings, market sentiment towards FED monetary policy remains key. Later today, U.S nonfarm payrolls will have a material impact on the NASDAQ 100 and market risk sentiment in general.

On Wednesday, the ADP had reported a 301k fall in nonfarm payrolls. A decline according to official numbers would test support for riskier assets. While it could force the FED to limit the number of hikes in the year, it will raise concerns over the economic outlook.

Thursday’s weekly jobless claims figures could soften the blow from any weak NFP numbers. The fall in the ADP number was attributed to the Omicron strain. Corporate earnings will be another key driver for the NASDAQ 100, however.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 2.31% to $38,228. Avoiding a fall back through the second major resistance level at $38,146 to sub-$38,000 levels would support a run at $40,000 levels.

Bitcoin would need to breakout from the third major resistance level at $39,288, however.

A fall back through the second major resistance level to sub-$38,000 would bring the first major resistance level at $37,737 back into play. Barring an extended sell-off in response to U.S stats and corporate earnings, Bitcoin should steer clear of sub-$37,000 levels. The day’s Pivot at $37,000 should limit the downside.

Looking at the EMAs, the signal remains bearish. The 50-day EMA has narrowed on the 100-day and 200-day EMAs, however, with the 100-day EMA narrowing on the 200-day EMA. Bitcoin currently sits above the 50-day EMA after this morning’s rally. A bullish cross of the 50-day EMA through the 100-day EMA would bring $40,000 levels into view.