Bitcoin Fear & Greed Index Holds at 31 as BTC Falls Short of $24,000

Key Insights:

• On Friday, bitcoin (BTC) ended a seven-day losing streak with a 3.08% gain to end the day at $23,319.
• US economic indicators supported a bullish session, with US nonfarm payrolls easing market fears of a US economic recession.
• Despite the bullish session, the Bitcoin Fear & Greed Index held steady at 31/100, with sentiment toward the Fed likely influencing.

On Friday, bitcoin (BTC) rose by 3.08%. Reversing a 0.76% fall from Thursday, bitcoin ended the day at $23,319. The bullish session saw BTC end its seven-day losing streak. BTC ended the day at $23,000 for the first time in four sessions.

A bullish start to the day saw BTC rise from an early low of $22,591 to a high of $23,474. Bitcoin broke through the First Major Resistance Level (R1) at $23,115 before sliding back to $22,758.

However, a bullish end to the day saw BTC break back through R1 to wrap up the day at $23,219.

Market jitters over a US economic recession eased, with US nonfarm payrolls delivering support. An impressive 528k increase in nonfarm payrolls sent the US unemployment rate to 3.5%.

With wage growth holding steady at 5.2%, the numbers did raise the prospects of another hefty Fed rate hike in September.

On Friday, the NASDAQ 100 slipped by 0.50% to end the week up by 2.15%. The correlation between the NASDAQ 100 and the crypto market remained in place, despite the NASDAQ’s Friday loss.

Bitcoin Fear & Greed Index Holds at 31/100 Despite BTC Rally

Today, the Fear & Greed Index held steady at 31/100. The Index showed little response to the BTC return to $23,000 and the US nonfarm payroll numbers for July.

While crypto market optimism delivered a $43.62 billion increase in total crypto market cap, the US stats raised the prospects of a hefty Fed rate hike in September. This likely contributed to the lack of movement in the Index.

For the bitcoin bulls, the Index needs to move back towards 40/100 and the neutral zone to deliver BTC support.

On July 30, the Index had stood at 42/100 to briefly border the neutral zone that starts at 46/100.

Avoiding a return to sub-30/100 could prove BTC positive, with an Index move through to 46/100 likely to bring $30,000 into view.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.39% to $23,228. A range-bound start to the day saw BTC fall to an early low of $23,208 before rising to a high of $23,351.

Technical Indicators

BTC needs to avoid the $23,125 pivot to target the First Major Resistance Level (R1) at $23,665.

BTC would need a bullish afternoon session to support a breakout from the Friday high of $23,474.

An extended rally would test resistance at $24,000 and the Second Major Resistance Level (R2) at $24,011. The Third Major Resistance Level (R3) sits at $24,894.

A fall through the pivot would bring the First Major Support Level (S1) at $22,782 into play. In the event of an extended sell-off, BTC would likely test the Second Major Support Level at $22,247 before any recovery.

The Third Major Support Level (S3) sits at $21,362.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 50-day EMA, currently at $23,079.

The 50-day pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, the signals were positive for BTC.

A hold above the 50-day EMA would support a run at R1 to bring $24,000 into play.

However, a fall through the 50-day EMA would bring the 100-day EMA, currently at $22,797, and S1 into play.

Looking at the trends, BTC would need a move through the July high of $24,619 and $25,000 to target the June high of $31,956. A bullish cross of the 100-day EMA through the 200-day EMA would support a run at the June high.

From $31,200, BTC should have a clear run at the May high of $40,004. BTC needs to hold above the 50-day EMA to support the near-term bullish trend.

For the bears, the June 18 low of $17,601 would be the next target, with a fall through the July low of $18,768 likely to test investor resilience.