It was a bearish Saturday, with BTC slipping 0.09% to end the day at $23,178. G20 talk and further reaction to US inflation and aggressive Fed comments left BTC in numbers reds. The Fear & Greed Index responded to the threat of a more hawkish Fed policy outlook and anti-crypto sentiment, falling from 52/100 to 51/100.
On Saturday, Bitcoin (BTC) fell 0.09%. Following a 3.13% drop on Friday, BTC ended the day at $23,178. The bearish session sent BTC below $23,000 for the second time in ten sessions. BTC extended its losing streak to five sessions, the second of the year.
A mixed start to the day saw BTC rally to an early morning high of $23,223. Failing to reach the first major resistance level (R1) at $23,942, BTC fell to a late low of $22,810. However, pulling away from the first major support level (S1) at $22,665, BTC found late support to end the day at $23,178.
G20 Anti-Crypto Sentiment and Fed Fear Weighted
The G20 updates in India affected investor appetite on Saturday. While calls for a comprehensive global regulatory framework are nothing new, talks of a cryptocurrency ban were bearish. The IMF maintained its stance against cryptocurrencies, with IMF Managing Director Kristalina Georgieva suggesting that banning cryptocurrencies should be an option.
The G20 comments came amid heightened regulatory scrutiny that weighed on investor sentiment in February.
Fed Fear added to the bearish mood on Saturday. Investors responded further to the latest US inflation figures and hawkish Fed talk that sent the NASDAQ Composite Index and the cryptocurrency market into the red on Friday.
More G20 updates are likely to attract interest. While the IMF floated the idea of a crypto ban, US Treasury Secretary Yellen poured water on a crypto ban but agreed on the need for a comprehensive crypto regulatory framework.
US regulatory activity and the talk of US legislators will need continued monitoring. Investors should also track crypto news leads for Binance and FTX updates and SEC vs. Ripple news that could move the dial.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to avoid the $23,070 pivot to target the first major resistance level (R1) at $23,331. A move through Saturday’s high of $23,223 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 $23,483 and resistance at $23,500. The third major resistance level (R3) sits at $23,896.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. BTC sat below the 100-day EMA ($23,546). 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 R1 ($23,331) would give bulls a run on R2 ($23,483) and the 100-day ($23,546) and 50-day (23,736) EMAs. However, a drop-through S1 ($22,918) and the 200-day EMA ($22,853) would give the bears a run at S2 ($22,657). A move through the 50-day EMA ($23,736) would send a bullish signal.
By Audy Castaneda
