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Bitcoin (BTC) Remains Under Pressure Ahead of Biden’s Executive Order
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It's a bullish start to the day for Bitcoin (BTC). Failure to revisit $40,000, however, could see Bitcoin slide back to sub-$38,000.
Key Insights:
- On Tuesday, Bitcoin (BTC) rose for just the 2nd day in 7 sessions.
- While outmuscled by Gold, Bitcoin outperformed the NASDAQ 100.
- Biden’s Executive Order and any evidence of Russia evading sanctions with crypto would test support.
On Tuesday, Bitcoin (BTC) rose for the 2nd day in 7. It was the 4th consecutive day that Bitcoin failed to revisit $40,000.
Recovering from an early morning day low of $37,905, Bitcoin struck a late day high of $39,361 before easing back. The day’s First Major Resistance Level at $39,314 pegged Bitcoin back late in the day.
Reversing a 1.04% loss from Monday, Bitcoin rose by 1.89% to end the day at $38,749.
It was a bullish session for the broader crypto market.
LUNA led the way, rallying by 9.65%, with ETH (+3.42%) finding strong support.
ADA (+1.01%), AVAX (+1.55%), BNB (+0.21%), SOL (+0.78%), and XRP (+0.10%) trailed the front runners.
Bitcoin Fear & Greed Index Hits Reverse
After falling to 21/100 on Tuesday, the Fear & Greed Index increased to 22/100 this morning. Bitcoin’s bullish session provided the upside, with the Index avoiding sub-20/100.
Despite the increase, the Index remained within the “Extreme Fear” zone.
For the Bitcoin bulls, the Index will need to move back through to 54/100 to bring $50,000 levels back into play for Bitcoin. A fall to sub-20/100 would deliver sub-$30,000 levels.
The upside for Bitcoin and the Index came despite the imminent Executive Order from the White House. There have yet to be reports of Russia circumventing sanctions via the crypto market, which is crypto market positive. Bitcoin will likely respond to Biden’s Executive Order, however.
Looking across the global financial markets, Bitcoin underperformed against Gold Spot, which rose by 2.63%. Bitcoin did outperform the U.S equity markets, however. The NASDAQ 100 ended the day with a 0.28% loss.
Bitcoin Price Action
At the time of writing, Bitcoin was up by 0.77% to $39,047.
Technical Indicators
Bitcoin will need to avoid the day’s $38,672 pivot to make a run on the First Major Resistance Level at $39,440. Bitcoin would need broader market support to break out from Tuesday’s high $39,361.
In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $40,123. The Third Major Resistance Level sits at $41,589.
A fall through the pivot would bring the First Major Support Level at $37,975 into play. Barring an extended sell-off, Bitcoin should avoid sub-$37,000. The Second Major Support Level at $37,220 should limit the downside.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin continues to sit below the 50-day EMA. Following Sunday’s bearish crosses, we have seen the 50-day EMA pull further back from the 100-day EMA, delivering downside pressure.
A move through the 50-day EMA, at $39,600, would provide support.
About the Author
Bob Masonauthor
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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