Bitcoin Fear & Greed Index Jumps to Deliver Bullish BTC Signal

Key Insights:

• It was a bullish start to the week, with bitcoin (BTC) rising by 3.66% to end the day at $20,213.
• A mixed session saw bitcoin revisit $20,000 for the first time since Friday, while bitcoin avoided sub-$19,000 for the first time in five sessions.
• However, technical indicators remained bearish, with bitcoin below the 100-day EMA.

On Monday, bitcoin (BTC) rose by 3.66%. Following a 0.35% gain on Sunday, bitcoin ended the day at $20,213.

A bearish start to the day saw bitcoin fall to a low of $19,036. Steering clear of sub-$19,000 and the First Major Support Level at $18,837, bitcoin rallied to a high of $20,313.

Bitcoin broke through the First Major Resistance Level at $19,685 to end the day at $20,000 levels.

With the US markets closed for Independence Day, dip buyers continued to deliver support following the bullish weekend.

Influences from the NASDAQ 100 Mini were muted, with the NASDAQ 100 Mini falling by 3.5 points. Bitcoin struggled to breakout from recent ranges, however, with crypto market headwinds showing no signs of abating.

This week, US economic indicators could shift sentiment towards the US economy, with ISM non-manufacturing PMI (Wed) and nonfarm payrolls (Fri) in focus. Investors will need to grapple with the FOMC meeting minutes (Wed), however.

For the day ahead, US factory orders will influence market risk appetite later in the day, with the NASDAQ 100 Mini likely to give bitcoin and the broader market direction early in the day.

At the time of writing, the NASDAQ 100 Mini was up 85 points.

Bitcoin Fear & Greed Index

This morning, the Fear & Greed Index jumped from 14/100 to 19/100. The breakout from 14/100 was the first since June 8.

Significantly, the Index rose to its highest level since May 7, when the Index hit 23/100 and bitcoin stood at $35,572.

A continued move towards the “Fear” zone would provide BTC with momentum.

The Index last sat in the “Fear” zone on May 5, when bitcoin stood at $36,630.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.94% to $20,402.

A mixed start to the day saw BTC fall to an early low of $20,163 before striking a high of $20,447.

BTC left the Major Support and Resistance Levels untested early on.

Technical Indicators

BTC will need to avoid the $19,851 pivot to test the First Major Resistance Level (R1) at $20,672.

BTC would need NASDAQ 100 Mini support to breakout from the $20,500.

An extended rally would test the Second Major Resistance Level (R2) at $21,133 and resistance at $21,500. The Third Major Resistance Level (R3) sits at $22,408.

A fall through the pivot would bring the First Major Support Level (S1) at $19,405 into play.

Barring an extended sell-off, BTC should avoid sub-$19,000 and the Second Major Support Level (S2) at $18,570.

The Third Major Support Level (S3) sits at $17,300.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 100-day EMA, currently at $20,766.

The 50-day EMA narrowed to the 100-day EMA. The 100-day EMA flattened on the 100-day EMA; bitcoin price positive.

A breakout from the 100-day EMA would bring R2 and $21,500 into play.

However, a retreat through the 50-day EMA would test support at $19,000.