BTC Fear & Greed Indicator Leaves Tremendous Fear as BTC Holds on to $17,000

the main ideas:

  • It was a bullish Monday, as bitcoin rose 0.26% to end the day at $17,185.
  • Market sentiment against the Fed and China’s economic recovery plans provided support.
  • The Fear and Greed Index left the fear zone with an increase from 25/100 to 26/100, indicating a mixed Tuesday session.

On Monday, bitcoin (BTC) rose 0.26%. After gaining 1.07% on Sunday, BTC ended the day at $17,185. It is worth noting that BTC ended the day at $17,000 for the second time since December 15th.

A mixed start to the day saw BTC drop to $17,123, avoid the first major support level (S1) at $16,986, and bitcoin reach a high of $17,400 in the late afternoon. BTC broke the first major resistance level (R1) at $17,237 and the second major resistance level (R2) at $17,335 before retreating to end the day at $17,185.

China’s economic recovery plans and Fed sentiment provided support

On Monday, updates from China supported the breakout session. After the removal of COVID-19 restrictions, the People’s Bank of China (PBoC) announced plans to revive the economy. The measures included supporting private companies and easing their crackdown on technology companies.

Investor sentiment towards the Federal Reserve and the US economic outlook provided support. After last week’s jobs report and the ISM Non-Manufacturing PMI, bets for a 25 basis point Fed rate hike continue to rise. A less aggressive interest rate path would reduce downside risks.

According to FedWatchTool, the probability of a 25 basis rate hike was 78.2% this morning, compared to 67.7% a week ago and 40.6% a month ago.

The bullish session came despite the ongoing investigations in Binance USA and the uncertainty surrounding the SEC v Ripple case. For investors looking for more signs of contagion from the crypto winter, Huobi Global remains an area of ​​interest.

Today, there are no US economic indicators that investors should take into account. However, Fed Chair Powell may send riskier assets into the deep red. While markets bet on a less hawkish Fed, inflation remains high, with the US unemployment rate at just 3.5%, a hawkish mix.

The NASDAQ mini index is down 11.75 points this morning.

Nasdaq – BTCUSD 100123 hourly chart

The Fear and Greed Index leaves the area of ​​extreme fear

Today the BTC Fear & Greed Index rose from 25/100 to 26/100. Significantly, the index exited the area of ​​extreme fear, supported by holdings of $17,000 worth of Bitcoin.

News from China and sentiment against the Fed’s monetary policy were behind BTC’s hold at $17,000. However, BTC’s late rebound from the session high reversed investor concerns ahead of Powell’s speech, leading the index back from a more significant move.

As investors prepare for Powell’s speech and the US CPI report on Thursday, avoiding below 100/20 remains key in the short term. The bulls will need to target the November 6 rally before FTX collapses at 40/100 to support BTC’s run to $20,000.

Fear and greed 100123

Bitcoin (BTC) price movement

At the time of writing, BTC was up 0.09% at $17,201, and a range-bound start to the day saw BTC drop to an early low of $17,186 before surging to $17,239.

BTCUSD 100123 daily chart

Technical indicators

BTC needs to break the $17,236 pivot to target the first major resistance level (R1) at $17,349 and Monday’s high at $17,400. A return to $17,400 indicates a bullish session. However, cryptocurrency news and Fed Chair Powell had to be market-friendly to support the breakout.

In case of an extended rally, BTC is likely to test the second major resistance level (R2) at $17,513 and the third major resistance level (R3) at $17,790.

Failure to break the pivot leaves the first major support level (S1) $17,072 in play. Barring the Fed chair-led sell-off, BTC should avoid below $17,000 and the second major support level (S2) at $16,959. The third major support level (S3) is at $16,682.

An adverse crypto market event could take less than $16,000.

BTCUSD 100123 hourly chart

Looking at the exponential moving average and the 4-hour candlestick chart (below), it was a bullish sign. Bitcoin sat above the 50-day moving average, currently at $16,948. After the bullish cross on Saturday, the 50-day moving average moved away from the 200-day moving average, with the 100-day moving average declining to the 200-day moving average, giving bullish signals.

Holding above S1 ($17,072) would support a breakout from R1 ($17,349) to target R2 ($17,513). But a drop through S1 ($17,072) would give the bears a run at S2 ($16,959) and the 50-day EMA ($16,948). A dip through the 50 day EMA could send a bearish signal.

BTCUSD 100123 4-hour chart

BTC Fear & Greed Index Leaves Tremendous Fear as BTC Clings to $17,000 – Coinphony [SV]

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