BTC Fear & Greed Index Inches Higher but Remains in Extreme Fear

Key Insights:

• On Wednesday, bitcoin (BTC) gained 1.69% to reverse a 0.72% loss from Tuesday.
• A choppy session saw BTC slide in response to Apple (AAPL) news before rebounding on a Bank of England intervention.
• However, the Bitcoin Fear & Greed Index held steady at 20/100.

On Wednesday, bitcoin (BTC) rose by 1.69%. Reversing a 0.72% fall from Tuesday, BTC ended the day at $19,419. Significantly, BTC failed to revisit $20,000 for the ninth time in ten sessions while falling to sub-$18,500 for the first time in six sessions.

A bearish morning saw BTC slide to an early low of $18,478. Finding support at the First Major Support Level (S1) at $18,495, BTC rallied to a late high of $19,791. However, falling short of the First Major Resistance Level (R1) at $20,042, BTC slipped back to sub-$19,500.

External market forces provided BTC and the broader market with direction throughout the Wednesday session. In the early hours of the day, news of Apple Inc. (AAPL) pulling plans to ramp up the production of its new iPhone 14 product suite weighed on riskier assets.

However, the Bank of England delivered support later in the Wednesday session with an intervention. BTC and the broader crypto market recoupled with the NASDAQ 100 mid-week.

On Wednesday, the NASDAQ 100 rallied by 2.05%, while the NASDAQ 100 Mini was down 12.25 points this morning.

Bitcoin Fear & Greed Index Inches Higher but Remains in Extreme Fear

Today, the Fear & Greed Index increased from 20/100 to 22/100. A bullish afternoon crypto session delivered a modest uptick. However, the Index remains within the Extreme Fear zone, with Fed Fear and economic uncertainty pegging the Index back from a return to 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 up 0.62% to $19,539. A mixed start to the day saw BTC fall to an early low of $19,380 before rising to a high of $19,602.

Technical Indicators

BTC needs to avoid the $19,229 pivot to target the First Major Resistance Level (R1) at $19,981. A BTC move through the Wednesday high of $19,791 would support a bullish session.

In the case of another extended rally, BTC should test the Second Major Resistance Level (R2) at $20,542 and resistance at $21,000. The Third Major Resistance Level (R3) sits at $21,855.

A fall through the pivot would bring the First Major Support Level (S1) at $18,668 into play. Barring an extended sell-off, BTC should avoid sub-$18,000 and the Second Major Support Level (S2) at $17,916.

The Third Major Support Level (S3) sits at $16,603.

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 $19,546.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA flattened on the 200-day EMA, delivering mixed price signals.

A move through the 100-day ($19,546) EMAs would give the bulls a run at R1 ($19,981) and the 200-day EMA ($20,073). However, a slide through the 50-day EMA ($19,311) would give the bears a run at S1 ($18,668).