Bitcoin (BTC) Rallies Despite the Fear & Greed Index at a 2022 Low

Key Insights:

• On Monday, Bitcoin (BTC) fell by 4.66% to end a 3-day winning streak and reverse a 4.15% gain from Sunday.
• Monday’s pullback left the Bitcoin Fear & Greed Index at 8/100, the lowest level since a March 14, 2020 low of 8/100.
• Bitcoin (BTC) technical indicators flash red, with bitcoin sitting below the 50-day EMA.

Bitcoin (BTC) slid by 4.66% on Monday. Reversing a 4.15% gain from Sunday, bitcoin ended the day at $29,839.

A choppy session saw bitcoin rise to an early high of $31,296 before sliding to a day low of $29,104.

While resistance at $29,000 proved key to preventing heavier losses, the Fear & Greed Index sends a bearish signal.

The Bitcoin Fear & Greed Index Falls to a 2022 Low of 8/100

This morning, the Bitcoin Fear & Greed Index fell from 10/100 to 8/100, its lowest level since March 14, 2020, when the Index also stood at 8/100.

Monday’s BTC loss came as investors across the global equity markets and the crypto market responded to dire economic data from China.

The weak stats coupled with the threat of a recession left the NASDAQ 100 down 1.20%. Fed Chair Powell’s assurances on the rate hike front have delivered support. There has been little chatter on the economic outlook, however.

While the correlation between bitcoin and the NASDAQ strengthened marginally on Monday, the knock-on effects from last week’s TerraUSD (UST) de-pegging remain an area of focus.

In the aftermath of the TerraUSD collapse, the market will need to consider a shift in the regulatory landscape and investor sensitivity to any adverse news that could send another crypto into a tailspin.

At the time of writing, the NASDAQ Mini was up 147 points to deliver BTC support.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 2.10% to $30,465.

A mixed start to the day saw bitcoin fall to an early morning low of $29,757 before striking a high of $30,508.

Technical Indicators

BTC will need to avoid the $30,083 pivot to target the First Major Resistance Level at $31,058.

BTC would need the broader crypto market to support a breakout from this morning’s high of $30,508.

An extended rally would test the Second Major Resistance Level at $32,272 and resistance at $32,500. The Third Major Resistance Level sits at $34,464.

A fall through the pivot would test the First Major Support Level at $28,860. Barring another extended sell-off, BTC should steer clear of sub-$28,000 levels. The Second Major Support Level sits at $27,889.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. BTC sits below the 50-day EMA, currently at $30,980. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; BTC negative.

A move through the 50-day EMA would support a run at $35,000.