Bitcoin (BTC) Under Pressure as the Bitcoin Fear & Greed Index Retreats

Key Insights:

• It was a bearish Sunday session, with bitcoin (BTC) falling by 2.06% to end the day at $21,032.
• Investor angst returned ahead of the NASDAQ futures open.
• Technical indicators are bearish, with bitcoin at above the 50-day EMA.

On Sunday, bitcoin (BTC) fell by 2.06%. Reversing a 1.20% gain from Saturday, bitcoin ended the week up 2.33% to $21,032.

A bullish start to the day saw bitcoin rise to a high of $21,856 before hitting reverse.

Bitcoin broke through the First Major Resistance Level at $21,740 before sliding to a late low of $20,971.

The reversal saw bitcoin fall through the First Major Support Level at $21,055 to end the week at $21,032.

Bitcoin saw the effects of Friday’s NASDAQ 100 rally wane, with investors cautious ahead of the Monday open.

Last week, the correlation between the NASDAQ 100 and bitcoin strengthened, and bitcoin will likely continue to track the NASDAQ near term. For now, the headwinds for bitcoin and the NASDAQ remain aligned.

At the time of writing, the NASDAQ 100 Mini was down 47.5 points.

Bitcoin Fear & Greed Index Falls Back in Response to Sunday Moves

This morning, the Fear & Greed Index fell from 14/100 to 12/100.

Sitting deep in the “Extreme Fear” zone, the latest pullback brings sub-10/100 and the June 19 low of 6/100 into play.

Investors will be looking for an upswing towards 25/100 and a move into the “Fear Zone” to suggest a bitcoin bottoming out.

The Index last visited the “Fear Zone” on May 5.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.10% to $21,010.

A mixed start to the day saw BTC rise to an early high of $21,078 before falling to a low of $20,975.

BTC left the Support and Resistance Levels untested early on.

Technical Indicators

A BTC move through the $21,280 pivot would bring the First Major Resistance Level at $21,605 and the Sunday high of $21,856 into play.

BTC would need plenty of support to break out from $21,500.

An extended rally would test the Second Major Resistance Level at $22,174 and resistance at $22,500. The Third Major Resistance Level sits at $23,056.

Failure to move through the pivot would bring the First Major Support Level at $20,716 into play. In case of another extended sell-off, bitcoin could test the Second Major Support Level at $20,403 and support at $20,000.

The Third Major Support Level sits at $19,516.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $21,219.

The 50-day EMA fell back from the 100-day EMA. The 100-day EMA eased back from the 100-day EMA, bitcoin price negative.

A return to $22,000 would bring the 100-day EMA, currently at $22,520, into play.

However, the fall through the 50-day EMA brings the Major Support Levels into play.