It was a bearish Friday, with BTC tumbling 3.13% to end the day at $23,200. US inflation numbers, and hawkish Fed talk sent the NASDAQ Composite Index and BTC into the red. The Fear and Greed Index responded to the threat of a more hawkish Fed policy outlook, falling from 53/100 to 52/100.
On Friday, bitcoin (BTC) fell 3.13%. Following a 1.00% loss on Thursday, BTC ended the day at $23,200. The bearish session sent BTC below $23,000 for the first time in nine sessions. BTC extended its losing streak to four sessions.
A bullish start to the day saw BTC rally to an early morning high of $24,150. Failing to reach the first major resistance level (R1) at $24,493, BTC fell to a late low of $22,873. BTC briefly fell through the first major support level (S1) at $23,515 and briefly through the second major support level (S2) at $23,079 before ending the day at $23,200.
US Economic Indicators Rekindle Fed Fears Despite Buyers’ Appetite
Investors on Friday shifted focus from heightened regulatory scrutiny to the US economic calendar. US inflation, spending and personal income figures were in the spotlight.
Prior to Friday’s data, the latest round of US economic indicators had fueled bets for a more hawkish Fed rate path to bring inflation on target. Friday’s statistics and Fed talk lined up with market fears.
The core PCE price index dashed hopes that the Fed would make progress in reining in inflation, rising to 4.7% in January, from an upwardly revised 4.6% in December. Economists forecast an increase of 4.3%.
Personal income and spending figures also rose, adding to the bearish mood.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to move through the $23,408 pivot to target the first major resistance level (R1) at $23,942 and Friday’s high of $24,150. A return to $24,000 would signal a breakout session. Crypto news wires need to be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $24,685 and resistance at $25,500. The third major resistance level (R3) sits at $25,962.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. BTC sat below the 100-day EMA ($23,608). The 50-day EMA closed above the 100-day EMA, with the 100-day EMA lowering back to the 200-day EMA, providing bearish signals.
A move through the 100-day EMA ($23,608) would support a break of the 50-day EMA ($23,919) and R1 ($23,942) to target R2 ($24,685) and $25,000. However, a drop through the 200-day EMA ($22,841) and S1 ($22,665) would give the bears a run at S2 ($22,131). A move through the 50-day EMA ($23,919) would send a bullish signal.
By Audy Castaneda
