BTC Fear & Greed Index Rises to 40/100 as Pivotal Fed Hopes Remain

the main ideas:

  • On Saturday, Bitcoin (BTC) rose 0.70% to end the day at $21,313, and Bitcoin avoided below $21,000 for the first time since Sept. 12.
  • The uptrend extended from Friday into the Saturday session and provided price support.
  • Bitcoin Fear & Greed jumped from 30/100 to 38/100, boosted by BTC’s return to $21,000.

On Saturday, Bitcoin (BTC) rose 0.70%. After rising 4.66% on Friday, BTC ended the day at $21,313. Notably, Bitcoin avoided below $21,000 for the first time since September 12, the day before the August report of the US Consumer Price Index.

A mixed start to the day saw BTC drop to an early low of $21,100, and avoiding the first major (S1) support level at $20481, Bitcoin surged to an early morning high of $21,470. However, with BTC dropping below the first major resistance (R1) at $21,573 it fell again to end the day at $21,313.

The market reaction to the very important US jobs report continued to provide price support. Figures released on Friday suggest the Fed may be giving up on gas.

However, investors will need to hear the views of FOMC members to support the broader market sentiment. Fed Chair Powell said on Wednesday that “the final interest rate level will be higher than previously expected”.

With Bitcoin sensitivities to the Federal Reserve and economic indicators unlikely to change, we expect the Nasdaq 100 mini-index to impact the last hour of today’s session.

NASDAQ – BTCUSD 061122 Daily Chart

Fear and Greed Index Rises to 40 as BTC Holds $21,000

The Fear and Greed Index rose this morning from 38/100 to 40/100. After Saturday’s jump to 38/100, a return to 40/100 brings the index closer to neutral territory. BTC contract at $21,000 supported the correction to 40/100.

Hopes that the pivotal Federal Reserve in December will provide BTC price support and an upside trend for the index continued.

The indicator will need to avoid below 40/100 and move to the neutral zone to confirm the reversal of the downtrend. However, a dip below 20/100 indicates BTC sliding below $18,000.

Bitcoin (BTC) Price Action

At the time of writing, BTC is up 0.04% at $21,322 and the range-limited start of the day saw BTC drop to an early low of $21,307 before climbing to $21,346.

BTCUSD 061122 . Daily Chart

Technical Indicators

BTC needs to avoid the $21,294 pivot to target the first major resistance level (R1) at $21,489 and $21,500. A return to $21,400 indicates a possible breakout session.

In the event of an extended rally, the second major resistance level (R2) at $21,664 and the $22,000 resistance is likely to play out. The third major resistance level (R3) is located at $22,034.

A fall through the pivot would trigger the first major support level (S1) at $21,119. Barring an extended sell-off, BTC should avoid below $20,500, and the second major support level (S2) at $20,924 should define the downside.

The third major support level (S3) is $20,554.

BTCUSD 061122 hourly chart

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 $20,666. The 50 day moving average has moved away from the 100 day moving average, with the 100 day moving average widening from the 200 day moving average to provide bullish signals.

A stop above the 50-day EMA ($20,666) would support a breakout from R1 ($21,489) to target R2 ($21,664) and $22,000. However, a dip through S1 ($21,119) would get S2 ($20,924) and 50 days ($20,666) in sight.

BTCUSD 061122 4-H Chart

Leave a Reply

Your email address will not be published. Required fields are marked *