Bitcoin Fear & Greed Index Holds on Neutral Border Despite BTC Decline

Key Insights:

• On Sunday, bitcoin (BTC) fell by 0.56% to end the week with a 4.89% gain.
• Despite a bearish end to the week, BTC visited $25,000 for the first time since June 13.
• The BTC reversal from $25,000 weighed on the Bitcoin Fear & Greed Index, which slipped from 46/100 to 45/100.

On Sunday, bitcoin (BTC) fell by 0.56%. Reversing a 0.16% gain from Saturday, BTC ended the week up 4.89% to $24,314. Notably, BTC visited $25,000 for the first time since June 13.

A bullish start to the day saw BTC rise to an early high of $25,012. BTC broke through the First Major Resistance Level (R1) at $24,793 before sliding to a low of $24,161.

BTC fell through the First Major Support Level (S1) at $24,207 before a partial recovery to $24,314.

There were no crypto events to provide BTC with direction. A return to $25,000 likely led to investors locking profits ahead of the Monday session. While US economic indicators have been positive, uncertainty over the Fed’s September monetary policy decision lingers.

Bitcoin Fear & Greed Index Slips to 45/100 Despite BTC Return to $25,000

Today, the Fear & Greed Index slipped from 46/100 to 45/100. A bearish end to the week led to a modest pullback. While uncertainty over the Fed likely led to investors locking in profits, the Index reflects improved investor sentiment.

The BTC return to $25,000 should support an Index move into the Neutral zone to give the bulls a run at $30,000. The Index last visited the Neutral zone on April 6.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.30% to $24,388.

Technical Indicators

BTC needs to move through the $24,479 pivot to target the First Major Resistance Level (R1) at $24,829 and the Sunday high of $25,012.

A bullish start to the session would support a breakout from $24,500.

An extended crypto rally would see BTC test the Second Major Resistance Level (R2) at $25,348 and resistance at $25,500. The Third Major Resistance Level (R3) sits at $26,198.

Failure to move through the pivot would bring the First Major Support Level (S1) at $23,977 into play. Barring an extended sell-off, BTC should steer clear of the Second Major Support Level (S2) at $23,645.

The Third Major Support Level (S3) sits at $22,794.

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 $23,984.

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

A further 50-day EMA widening from the 100-day EMA would support a run at R1 ($24,829) to bring $25,000 back into play.

However, a fall through the 50-day EMA and S1 ($23,977) could see BTC test S2 ($23,645) and the 100-day EMA, currently at $23,571.

Trend Analysis

Looking at the trends, a move through the August high of $25,012 and $25,500 would target the June high of $31,956. Avoiding a fall through the 50-day EMA, currently at $23,984, would support the current upward trend. From $32,000, BTC should have a clear run at the May high of $40,004.

For the bears, the June 18 low of $17,601 would be the next target, with a fall through $20,000 and the July low of $18,768 likely to test investor resilience.

However, as shown below, BTC is on a trend of higher lows, supporting a bullish outlook.