BTC Fear & Greed Index Avoids Below 20 Despite BTC Bearish Session

the main ideas:

  • On Sunday, Bitcoin (BTC) fell 0.62% to end the week with a loss of 3.10%.
  • The lack of cryptocurrency news has left BTC under pressure as investors are likely to weigh on the global economic outlook and the impact of the Federal Reserve.
  • Bitcoin Fear & Greed fell from 24/100 to 21/100, affected by another BTC day below $19,000.

On Sunday, Bitcoin (BTC) was down 0.62%. After falling 1.89% on Saturday, BTC ended the week 3.10% lower at $18,817. BTC fell below $20,000 for the seventh consecutive session and today ended below $19,000 for the fourth time this week.

A bullish morning saw Bitcoin surge to a late-morning high of $19,188 before pulling back. When BTC failed to reach the first major resistance level (R1) at $19,226, BTC fell to a late low of $18,646. BTC dropped through the first major support level (S1) at $18,733 before ending the day at $18,817

It was another quiet session on crypto news, with no crypto events to impact. It is likely that the lack of news has prompted investors to consider the impact of the Federal Reserve and other central banks on the global economy.

Doom and gloom forecasts and an unwavering Federal Reserve, eager to make inflation a target, remain a headwind for riskier assets. Last Thursday and Friday, the broader crypto market decoupled from the Nasdaq 100 index. The continued decoupling will shift investors’ focus away from the Federal Reserve and the economic backdrop.

However, regulatory talk will remain another area of ​​focus as the SEC and CFTC battle to regulate the digital asset space.

This morning the NASDAQ 100 Mini is down 73.5 points.

Bitcoin Fear & Greed Indicator Continues Avoiding Sub-20/100

Today’s Fear and Greed Index has dropped from 24/100 to 21/100. BTC affected investor sentiment with a third consecutive daily loss. During the week, BTC also finished the day below $19,000 for the fourth day.

Significantly, the index avoided the sub-20, which indicates the resilience of investors. The index will need to form an uptrend to give BTC a run at $25,000.

In recent weeks, avoiding sub-20/100 has been key. Bears will look for a dip below 20/100 to signal a BTC drop below $18,000, in turn, bulls will look for an indicator back to 40/100 to support a move towards $25,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC is unchanged at $18,817.

The range-bound morning saw BTC drop to an early low of $18,761 before rallying to $18,946.

BTCUSD 260922 daily chart

Technical Indicators

BTC needs to break above the $18,884 pivot to target the first major resistance (R1) at $19,121 and Sunday’s high at $19,188. A move by BTC through Sunday’s high of $19,188 will support a bullish session.

In the event of an extended rally, BTC should test the second major resistance (R2) at $19,426 and the resistance at $19,500. The third major resistance level (R3) is at $19,968.

A failure to move through the pivot leaves the first major support level (S1) at $18,579 in play. Barring an extended sell-off, BTC should avoid below $18,000, and the second major support level (S2) at $18342 should act as a cap to the downside.

The third major support level (S3) is $17,800.

BTCUSD 260922 hourly chart

Looking at the exponential moving average and the 4-hour candlestick chart (below), it was a bearish signal. This morning, Bitcoin is below its 50-day moving average, currently at $1,9252.

The 50-day EMA has pulled back from the 100-day moving average, with the 100-day moving average pulling back from the 200-day moving average, giving bearish price signals.

A breakout and R1 ($19,121) will trigger the bulls at the 50-day EMA ($19,252) and R2 ($19,426). The 200-day EMA is $20,212, however, a failure to break above the 50-day EMA will leave Bitcoin under pressure.

BTCUSD 260922 4-hour chart

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