BTC Fear & Greed Index Holds Steady Despite Another BTC Fall
- On Saturday, bitcoin (BTC) returned to sub-$19,000, with a 1.89% loss to end the day at $18,935.
- There were no major crypto events to test investor sentiment, leaving regulatory chatter in the spotlight.
- The Bitcoin Fear & Greed Index held steady at 24/100 despite the broader market having a bearish session.
On Saturday, bitcoin (BTC) fell by 1.89%. Following a 0.59% decline on Friday, BTC ended the day at $18,935. BTC fell short of $20,000 for the sixth consecutive session and ended the day at sub-$19,000 for a third time this week.
After a choppy morning, BTC rose to an early afternoon high of $19,315 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $19,690, BTC slid to a late low of $18,822. BTC fell through the First Major Support Level (S1) at $18,829 before ending the day at $18,935
It was a quiet Saturday session on the crypto news wires, with no crypto events to influence. However, regulator activity could become an area of interest.
On Thursday, the UK government announced new reforms to crack down on fraud and money laundering. In the US, the Commodity Futures Trading Commission (CFTC) also hit the news after filing its first claim against a DAO. In addition, the CFTC fined bZeroX $250,000 for operating illegally and issued a cease-and-desist order.
However, with investor optimism towards the outcome of the SEC v Ripple case at a high, a settlement or Ripple victory could give the CFTC the powers to regulate the digital asset space. Crypto market participants have voiced their preference for the CFTC to oversee cryptos.
Bitcoin Fear & Greed Index Holds at 24 Despite BTC Loss
Today, the Fear & Greed Index held steady at 24/100. The Index held steady despite BTC wrapping up the day at sub-19,000 and a second consecutive daily loss.
Significantly, the Index avoided sub-20, suggesting a greater 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 up by 0.03% to $18,940.
BTC needs to move through the $19,024 pivot to target the First Major Resistance Level (R1) at $19,226 and the Saturday high of $19,315. A BTC move through the Saturday high of $19,315 would support a bullish session. However, avoiding a return to sub-$18,500 would be the key this morning.
In the case of an extended rally, BTC should test the Second Major Resistance Level (R2) at $19,517. The Third Major Resistance Level (R3) sits at $20,010.
Failure to move through the pivot would leave the First Major Support Level (S1) at $18,733 in play. Barring an extended sell-off, BTC should avoid sub-$18,500. The Second Major Support Level (S2) at $18,531 should limit the downside.
The Third Major Support Level (S3) sits at $18,038.
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 $19,326.
The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish price signals.
A move through and R1 ($19,226) would give the bulls a run at the 50-day EMA ($19,326) and R2 ($19,517). The 200-day EMA sits at $20,288. However, failure to move through the 50-day EMA would leave BTC under pressure.