Bitcoin (BTC) rose 4.77% on Wednesday to end a five-day losing streak. The breakout session came despite a spike in US inflationary pressure that left the NASDAQ 100 in the red for the session. The Bitcoin Fear & Greed Index surged from 15/100 to 18/100, with investors now awaiting US retail sales figures to be released on Friday.
On Tuesday, Bitcoin (BTC) was up 4.77%. Reversing a 3.18% loss on Tuesday, Bitcoin ended the day at $20,231. Bitcoin ended a five-day losing streak. A choppy session saw BTC drop to a low of $18,919 in response to US inflation figures before making a move.
BTC fell through the first major support level at $19,342 before reaching a high of $20,275. BTC broke through the first major resistance level at $19,821 to be range bound for the second major resistance level at $20,331 before pulling back.
The market’s reaction to the June inflation figures in the US tested investors’ appetite for riskier assets. However, with the Fed concerned about the impact of rate hikes on the US economy, investors pulled back ahead of US retail sales figures to be released tomorrow.
BTC tracked the NASDAQ 100 through the US session before a post-close breakout in the US market. On Wednesday, the NASDAQ 100 fell 0.15%.
Bitcoin Greed and Fear Index Rises Again to 18/100
This Wednesday, the fear and greed index increased from 15/100 to 18/100. The upside was modest relative to Bitcoin’s rally, with investor caution seeing the index pull back from a 20/100 return.
For the bulls, a move back towards the July high of 24/100 was positive, although headwinds persist. A likely change in the regulatory landscape, the threat of a US recession, and uncertainty over the Fed’s monetary policy continue to test investor confidence. The bulls will look for a return to the “fear” zone to signal a possible end to the crypto winter.
Bitcoin Price Action (BTC)
Currently, BTC is up 0.14% at $20,259. A range-bound start to the day saw BTC rally to an early high of $20,380 before falling to a low of $20,158.
BTC needs to avoid the pivot at $19,805 to target the first major resistance level (R1) at $20,695 and test resistance at $21,000. It would need a bullish session to support a breakout of $20,500.
A prolonged rally would test the second major resistance level (R2) at $21,165 and resistance at $21,500. The third major resistance level (R3) is located at $22,520. A drop through the pivot would bring into play the first major support level (S1) at $19,344.
Barring a prolonged sell-off, BTC should avoid below $19,000 and the second major support level (S2) at $18,453. The third major support level (S3) is located at $17,096.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. This Wednesday, Bitcoin was below the 50-day EMA, currently at $20,303. The 50-day EMA turned down to the 100 days EMA, with the 100-day EMA approaching the 200-day EMA; positive Bitcoin price. A further decline from the 50-day EMA to the 100-day EMA would bring $21,000 into play.
The bulls will look for a breakout of the 50-day EMA to target the 100-day EMA, currently at $20,610, and resistance at $21,000.
Based on trend analysis, Bitcoin would need a move through the May 30 high of $32,503 to target the March 28 high of $48,192. In the short term, the $25,000 resistance will likely be the first test if the uptrend resumes. For the bears, the June 18 low of $17,601 would be the next target.
By Audy Castaneda
