BTC Fear & Greed Index Avoids sub-20 Despite a Bearish BTC Session

Key Insights:

• On Sunday, bitcoin (BTC) fell by 0.62% to end the week with a 3.10% loss.
• A lack of crypto news stories left BTC under pressure as investors likely considered the global economic outlook and the influence of the Fed.
• The Bitcoin Fear & Greed Index fell from 24/100 to 21/100, weighed by another BTC day at sub-$19,000.

On Sunday, bitcoin (BTC) fell by 0.62%. Following a 1.89% decline on Saturday, BTC ended the week down by 3.10% to $18,817. BTC fell short of $20,000 for the seventh consecutive session and ended the day at sub-$19,000 for the fourth time in the week.

A bullish morning saw BTC rise to a late morning high of $19,188 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $19,226, BTC slid to a late low of $18,646. BTC fell through the First Major Support Level (S1) at $18,733 before ending the day at $18,817

It was another quiet session on the crypto news wires, with no crypto events to influence. The lack of news likely left investors to consider the influence of the Fed and other central banks on the global economy.

Doom and gloom projections and an unwavering Fed, looking to bring inflation to target, remain headwinds for riskier assets. Last Thursday and Friday, the broader crypto market decoupled from the NASDAQ 100. A continued decoupling would shift investor focus away from the Fed and the economic backdrop.

However, regulatory chatter will remain another area of focus as the SEC and the CFTC battle it out to regulate the digital asset space.

This morning, the NASDAQ 100 Mini was down 73.5 points.

Bitcoin Fear & Greed Index Continues to Avoid Sub-20/100

Today, the Fear & Greed Index fell from 24/100 to 21/100. BTC weighed on investor sentiment with a third consecutive daily loss. In the week, BTC also ended the day at sub-$19,000 for the fourth day.

Significantly, the Index avoided sub-20, suggesting investor resilience. The Index would need to form an upward trend to give BTC a run at $25,000.

In recent weeks, avoiding sub-20/100 has been the key. The bears will be eying a fall to sub-20/100 to signal a BTC slide to sub-$18,000. By contrast, the bulls will look for an Index return to 40/100 to support a move toward $25,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was flat at $18,817.

A range-bound morning saw BTC fall to an early low of $18,761 before rising to a high of $18,946.

Technical Indicators

BTC needs to move through the $18,884 pivot to target the First Major Resistance Level (R1) at $19,121 and the Sunday high of $19,188. A BTC move through the Sunday high of $19,188 would support a bullish session.

In the case of an extended rally, BTC should test the Second Major Resistance Level (R2) at $19,426 and resistance at $19,500. The Third Major Resistance Level (R3) sits at $19,968.

Failure to move through the pivot would leave the First Major Support Level (S1) at $18,579 in play. Barring an extended sell-off, BTC should avoid sub-$18,000. The Second Major Support Level (S2) at $18,342 should limit the downside.

The Third Major Support Level (S3) sits at $17,800.

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 $19,252.

The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish price signals.

A move through and R1 ($19,121) would give the bulls a run at the 50-day EMA ($19,252) and R2 ($19,426). The 200-day EMA sits at $20,212. However, failure to move through the 50-day EMA would leave BTC under pressure.