BTC Fear & Greed Index Sends Bullish BTC Signals From the Greed Zone
Key Insights:
- It was a bearish Thursday, with BTC falling by 0.98% to end the day at $23,491.
- US economic indicators, corporate earnings, and the NASDAQ Index failed to deliver support, with crypto news updates weighing.
- However, the Fear & Greed Index held steady at 60/100.
On Thursday, bitcoin (BTC) fell by 0.98%. Partially reversing a 2.54% gain from Wednesday, BTC ended the day at $23,491. Despite the bearish session, BTC avoided a return to $23,000.
A bullish start to the day saw BTC rally to an early high of $24,240. BTC broke through the First Major Resistance Level (R1) at $24,106 before sliding to a late low of $23,385. However, steering clear of the First Major Support Level (S1) at $23,049, BTC revisited $23,586 before easing back.
Crypto News Wires Overshadow a Breakout NASDAQ Index Session
It was a busy Thursday session, with central bank action, corporate earnings, and US economic indicators in focus. Better-than-expected initial jobless claims continued to ease fears of a hard landing. Importantly, tight labor market conditions may not force the Fed into a more aggressive interest rate trajectory if inflation continues to soften.
Meta Platforms Inc. (META) contributed to a bullish NASDAQ session as investors responded further to Fed Chair Powell’s press conference. META surged by 23.28% on quarterly earnings and the news of a $40 billion buyback.
The NASDAQ Index rallied by 3.25%. However, the NASDAQ mini was down 173.25 points this morning.
Despite the bullish NASDAQ session, the crypto news updates tested buyer appetite. News of Kraken shutting shop in Abu Dhabi in ongoing cost-cutting efforts and the launch of a US DoJ investigation into Silvergate Bank and bank dealings with FTX and Alameda research weighed on investor sentiment.
The Day Ahead
In the afternoon session, the US Jobs Report will draw plenty of interest. While the nonfarm payrolls will influence, wage growth numbers could shift sentiment toward Fed monetary policy. A pickup in wage growth could bring Fed Chair Powell’s view on inflation into question.
Later in the session, the ISM Non-Manufacturing ISM will also draw interest.
In a busy afternoon, US corporate earnings could also provide direction. Apple (AAPL), Amazon.com (AMZN), and Alphabet Inc. (GOOGL) will release results today. Gloomy outlooks would weigh on BTC and the broader crypto market.
Investors need to continue monitoring the crypto news wires. Updates from FTX and Genesis bankruptcy proceedings and rulings from the SEC v Ripple case will provide direction. However, regulatory chatter will also influence.
The Fear & Greed Index Holds Steady Despite Bearish BTC Session
Today, the BTC Fear & Greed Index held steady at 60/100. US economic indicators and corporate earnings failed to influence. Following the crypto market-friendly Fed Chair Powell press conference on Wednesday, investor focus returned to the crypto market.
Easing FTX and Genesis contagion risk and a less hawkish Fed leaves investors to grapple with regulatory risk. However, the fallout from the crypto winter and ongoing investigations into the collapse of FTX will continue to influence.
Near-term, the Index must avoid the Neutral zone to support a BTC run at $25,000. A fall into the Fear zone would signal a near-term bullish trend reversal.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up 0.31% to $23,564. A range-bound start to the day saw BTC fall to an early low of $23,437 before finding support.
Technical Indicators
BTC needs to move through the $23,705 pivot to target the First Major Resistance Level (R1) at $24,026 and the Thursday high of $24,240. A return to $24,000 would signal a bullish session. However, the crypto news wires and the US Jobs Report will need to be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $24,560. The Third Major Resistance Level sits at $25,415.
Failure to move through the pivot would leave the First Major Support Level (S1) at $23,171 into play. However, barring a risk-off-fueled crypto sell-off, BTC should avoid sub-$23,000 and the Second Major Support Level (S2) at $22,850. The Third Major Support Level (S3) sits at $21,995.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA, currently at $23,156. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above S1 ($23,171) and the 50-day EMA ($23,156) would support a breakout from R1 ($24,026) to target R2 ($24,560). However, a fall through S1 ($23,171) and the 50-day EMA ($23,156) would give the bears a run at S2 ($22,850). A fall through the 50-day EMA would send a bearish signal.
