The BTC Fear Index remains flat in the range bound BTC and NASDAQ sessions

the main ideas:

  • On Friday, bitcoin (BTC) rose 0.01%, marking its fifth gain in thirteen sessions.
  • The eventless session left Bitcoin range bound for most of the day. Regulatory talk and FTX grabbed the cryptocurrency headlines.
  • The Bitcoin Fear & Greed Index held steady at 23/100. Bitcoin and the Nasdaq Composite Index ended the day flat.

On Friday, Bitcoin (BTC) gained 0.01%. After gaining 0.17% from Thursday, BTC ended the day at $16,685, and it should be noted that BTC recorded its fifth gain in thirteen sessions while it fell below $17,000 for the third time since 2020.

A bullish start to the day saw Bitcoin climb to an early high of $16,977, and Bitcoin breached the first major resistance level (R1) at $16,809 and the second major resistance level (R2) at $16,934 before hitting a reversal.

The reversal saw BTC drop to a mid-afternoon low of $16,546. While avoiding the first major support level (S1) at $16,484, the late crypto market support reversed losses from the session.

Regulatory chatter pegged BTC from a rebound level to $17,000. Regulators in the US, UK and Australia have been vocal since the collapse of FTX, raising concerns about strict style regulations.

The UK’s Financial Conduct Authority (FCA) proposed banning crypto platforms this week.

While the regulatory talk attracted interest, a quiet US economic calendar left the Nasdaq Composite flat during the session.

Nasdaq – BTCUSD 181122 5-minute chart

The Fear and Greed Index is flat alongside Bitcoin and the Nasdaq

Today, the Fear and Greed Index has stabilized at 23/100. Although the risk of FTX contagion remained, the lack of negative crypto market news left Bitcoin and the index unchanged during the session. It was also a quiet day in the US economic calendar, which allowed investors to take a breather from the recent market turmoil.

BTC avoided below $16,000 for the fourth consecutive session, adding to a potential price bottom support. But investor sentiment is likely to remain dependent on FTX-related infection news in the near term.

Negative news aside, the index’s return to fear territory would suggest BTC’s return to $20,000, however, the index would need to avoid sub-20/100 to support the index’s return to 40 and a move into neutral territory. Another drop below 20/100 could see BTC risk below $10,000.

Bitcoin (BTC) price movement

At the time of writing, BTC is down 0.09% at $16,670. A range-bound start to the day saw BTC climb to an early high of $16,688 before falling to a low of $16,668.

BTCUSD 191122 daily chart

Technical indicators

A move through the $16,736 pivot would target the first major resistance level (R1) at $16,926 and Friday’s high at $16,977. A breakout from R1 and back towards $17,000 would indicate a bullish session.

In case of an extended rally, BTC is likely to test the second major resistance level (R2) at $17,167. Cryptocurrency news updates should be friendly to BTC to support a return to $17,000.

The third major resistance level (R3) is located at $17,598.

A fall through the pivot would put the first major support level (S1) at $16,495. Barring another extended sell-off, BTC should avoid below $16,000, and the second major support level (S2) at $16,305 should act as a cap for the downside. However, the negative news regarding FTX could bring as little as $16,000 into the game.

The third major support level (S3) is at $15,874.

BTCUSD 191122 hourly chart

Looking at the exponential moving average and the 4-hour candlestick chart (below), it was a bearish signal. This morning, bitcoin was below the 50-day moving average, currently at $17,057. The 50-day moving average has pulled back from the 200-day moving average, with the 100-day moving average pulling back from the 200-day moving average, giving bearish signals.

A move through R1 ($16,926) will trigger bulls at the 50-day moving average ($17,057) and R2 ($17,167). However, if one does not break the 50-day moving average, then S1 ($16,495) will be visible.

BTCUSD 191122 4-hour chart

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