BTC Fear & Greed Index Holds Steady Despite a Bullish BTC Session

Key Insights:

• On Sunday, bitcoin (BTC) rose by 1.41%. Reversing a 1.18% loss from Saturday, BTC ended the day at $17,127.
• Investor angst over the Fed and the US economy eased with subsiding FTX contagion risk and continued reports of China reopening providing support.
• However, the Fear & Greed Index held steady at 26/100, with lower trading volumes suggesting that investors are in wait-and-see mode.

On Sunday, bitcoin (BTC) rose by 1.41%. Reversing a 1.18% loss from Saturday, BTC ended the week up 4.21% to $17,127. The bullish session saw BTC wrap up the day at $17,000 for the third time in five sessions.

Bullish throughout the Sunday session, BTC rose from an early morning low of $16,885 to a final-hour high of $17,210.

Steering clear of the Major Support Levels, BTC broke through the First Major Resistance Level (R1) at $17,067. However, coming up short of the Second Major Resistance Level (R2) at $17,245, BTC fell back to end the day at sub-$17,200 levels.

After a bearish Saturday session, dip buyers returned, supporting the BTC and broader crypto market recovery. While the crypto market faces regulatory headwinds and the risk of more fallout from the collapse of FTX, FTX contagion risk has eased.

Further reports of the Chinese government planning to ease lockdown measures were also crypto market positives.

Today, US economic indicators, the NASDAQ Composite Index, and FTX-related news will influence. The US ISM Non-Manufacturing PMI could raise more concerns over the US economic outlook following last week’s ISM Manufacturing PMI, which pointed to a contraction in the US manufacturing sector.

However, no FOMC members are speaking, with the Fed in its blackout period until December 15.

This morning, the NASDAQ mini was down 16.5 points.

The Fear & Greed Index Holds Steady at 26/100

Today, the BTC Fear & Greed Index remained at 26/100. After holding steady on Sunday despite the bearish Saturday session, this morning’s hold suggests that investors are in wait-and-see mode.

While FTX contagion risk has eased, investors expect a regulatory response once the dust settles. Uncertainty about the regulatory landscape has left BTC and the broader market in tighter ranges.

Investors also need to consider the US economic outlook and the Fed’s policy intentions, which remain uncertain following last week’s economic indicators.

However, hopes of a bottoming out have limited the downside, with the Index continuing to avoid sub-20/100.

Near-term, avoiding sub-20/100 remains the key near-term. The bulls will need to target the pre-FTX collapse November 6 high of 40/100 to support a BTC run at $20,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.61% to $17,232. A bullish start to the day saw BTC rise from an early low of $17,095 to a high of $17,345.

BTC briefly broke through the First Major Resistance Level (R1) at $17,263.

Technical Indicators

BTC needs to avoid the $17,074 pivot to retarget the First Major Resistance Level (R1) at $17,263 and the morning high of $17,345. A move through the morning high of $17,345 would signal a bullish session. However, the crypto news wires and US economic indicators should be market-friendly to support a breakout session.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $17,399 and resistance at $17,500. The Third Major Resistance Level (R3) sits at $17,724.

A fall through the pivot would bring the First Major Support Level (S1) at $16,938 into play. Barring an extended sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,749 should limit the downside. The Third Major Support Level (S3) sits at $16,424.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $16,895. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through R1 ($17,263) would give the bulls a run at R2 ($17,399) and the 200-day EMA ($17,410). However, a fall through S1 ($16,938) would bring the 100-day EMA ($16,895) and the 50-day EMA ($16,854) into view. A fall through the 50-day EMA would signal an extended sell-off.