the main ideas:
- On Wednesday, Bitcoin (BTC) rose 3.41% to end the day at $20,790, and it is worth noting that BTC visited $21,000 for the first time since September 13.
- The market sentiment towards Fed Pivot produced another breakout session for BTC and the broader market.
- The Bitcoin Fear & Greed Index consolidated Tuesday’s exit from the Extreme Fear area, down slightly from 33/100 to 32/100.
On Wednesday, Bitcoin (BTC) rose 3.41%. After rising 3.95% on Tuesday, BTC ended the day at $20,790. It should be noted that BTC visited $21,000 for the first time since September 13 (US CPI report for August) before falling back to end the day at $20,000 for the second time since October 5.
A mixed start to the day saw BTC drop to an early morning low of $20,077. However, after avoiding the first major support level (S1) at $19,426, BTC surged to an afternoon high at $21,022. BTC broke the first major resistance at $2,607 to test the $21,000 resistance before pulling back.
The US economic calendar was quiet in the middle of the week, leaving bets on the Federal Reserve’s pivot to drive demand for cryptocurrencies. Bitcoin and the broader market have been decoupled from the Nasdaq 100, which has been hurt by disappointing corporate earnings.
Microsoft Corp (MSFT) and Alphabet Inc. (GOOGL) Disappointing results and warnings leave the NASDAQ 100 index in the red.
Ahead of Thursday’s session, FedWatch had the probability of raising rates in November and December at 85.4% and 38.9%, respectively. A week ago, the probability of a 75 basis point increase in December was 77.0%.
Later today, US economic indicators will return to the spotlight. Q3 GDP, inflation and jobless claims will give markets more clues as to what to expect from the Fed. The mini Nasdaq 100 index rose 32.75 points this morning.
This morning, the NASDAQ 100 Mini rose 51.25 points, providing crypto support ahead of today’s stats.
Fear & Greed Drops to 32/100, But Supports $25,000 BTC Run
The Fear and Greed Index fell this morning from 33/100 to 32/100. Despite the pullback, the index remained within the area of fear, reinforced by Tuesday’s exit from the area of intense fear.
The shift in sentiment toward the Federal Reserve’s monetary policy reduced investors’ concerns before today’s data dumped. Later in the day, higher US inflation and lower jobless claims, along with better-than-expected third-quarter GDP numbers, could heighten fears of a hawkish move in December.
The indicator will need to target 40/100 and the neutral zone to support a reversal of the BTC downtrend. However, a dip below 20/100 indicates BTC sliding below $18,000.
Bitcoin (BTC) Price Action
At the time of writing, BTC is down 0.06% at $20,777 and a mixed start to the day saw BTC surge to an early high of $20,861 before dropping to $20,625.
BTC needs to avoid the $20,630 pivot to target the first major resistance level (R1) at $21,182, and a BTC return to $21,000 will signal another breakout session.
In the event of an extended rally, the second major resistance level (R2) at $21.575 and $22,000 is likely to come into play. The third major resistance level (R3) is at $22,520.
A fall through the pivot would place the first major support level (S1) at $20,237. Except for the extended sell off, BTC should avoid below $20,000 and the second major support level (S2) at $1,685. Later today, Bitcoin’s movement will depend on US data.
The third major support level (S3) is $18,740.
Looking at the exponential moving average and the 4-hour candlestick chart (below), it was a bullish signal. This morning, Bitcoin is above its 50-day moving average, currently at $1,684.
After a bullish crossover on Wednesday, the 50-day moving average moved away from the 200-day moving average, with the 100-day moving average approaching the 200-day moving average to provide bullish signals.
A bullish crossover from the 100-day moving average to the 200-day moving average would signal another breakout session. However, a BTC drop through S1 ($20,237) would expose S2 ($19,685) and EMA.
BTC Fear & Greed Takes BTC Back to $21,000 – Coinphony [SV]