BTC Fear & Greed Index Creeps Higher on BTC Range-Bound Session

Key Insights:

• On Saturday, bitcoin (BTC) fell by 0.59% to end the day at $19,316.
• US inflation figures from Friday, Fed Fear, and the NASDAQ’s worst losing streak since 2008 weighed.
• Despite the bearish session, the Bitcoin Fear & Greed Index rose from 20/100 to 24/100.

On Saturday, bitcoin (BTC) slipped by 0.59%. Following a 0.81% fall from Friday, BTC ended the day at $19,316.

Following a 38.9% loss from Q3, BTC traded within a tight range and avoided sub-$19,000 for the second time in twelve sessions.

A mixed start to the session saw BTC rise to an early high of $19,485. Coming up short of the First Major Resistance Level (R1) at $20,223, BTC fell to a late morning low of $19,157. Steering clear of the First Major Support Level (S1) at $18,996, BTC ended the day at $19,316.

Investor sentiment toward inflation, Fed monetary policy, and the economic outlook left BTC on the back foot. The influence of US economic indicators and Fed monetary policy on the crypto market supported the ongoing correlation with the NASDAQ 100.

Bitcoin Fear & Greed Index Rises on Range-Bound BTC Session

Today, the Fear & Greed Index rose from 20/100 to 24/100. A bearish BTC session, fueled by inflation and Fed fear, led BTC into the red. However, BTC avoided sub-$19,000, with a range-bound session delivering hope of a bottoming out.

Friday’s US inflation figures tested investor resilience going into the weekend. However, investors have yet to jump ship, with investor resilience reflected in the Index moves. This morning’s increase left the Index on the border of the Fear zone.

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 down 0.02% to $19,312. A range-bound start to the day saw BTC fall to an early low of $19,303 before rising to a high of $19,325.

Technical Indicators

BTC needs to move through the $19,319 pivot to target the First Major Resistance Level (R1) at $19,482 and resistance at $19,500. A move through the Saturday high of $19,485 would signal a bullish session.

In the case of another extended rally, BTC should test the Second Major Resistance Level (R2) at $19,647 and target the Third Major Resistance Level (R3) sits at $19,975.

Failure to move through the pivot would leave the First Major Support Level (S1) at $19,154 in play. Barring an extended sell-off, the Second Major Support Level (S2) at $18,991 will likely limit the downside.

The Third Major Support Level (S3) sits at $18,663.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat at the 50-day EMA, currently at $19,362.

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 the 50-day ($19,362) EMA would give the bulls a run at R1 ($19,482) and the 100-day EMA ($19,506). The 200-day EMA sits at $19,965. However, a failure to move through the 50-day EMA ($19,362) would give the bears a run at S1 ($19,154) and sub-$19,000.