It was a bearish Thursday, with BTC slipping 1.00% to end the day at $23,950. Regulatory risk jitters resurfaced, with the SEC, Fed and IMF targeting the digital asset space. The Fear & Greed Index responded to the increased scrutiny by returning to the neutral zone.
On Thursday, bitcoin (BTC) fell 1.00%. Following a 1.12% loss on Wednesday, BTC ended the day at $23,950. The bearish session dropped BTC below $24,000 for the first time in seven sessions. BTC extended its losing streak to three sessions.
A bullish start to the day saw BTC rally to an early morning high of $24,600. Facing the first major resistance level (R1) at $24,591, BTC fell to a midday low of $23,622. BTC briefly fell through the first major support level (S1) at $23,684, before ending the day at $23,950.
Regulatory Activity Leaves BTC on an Extended Loss Streak
On Thursday, the Fed joined the SEC, the US Department of Justice, and the CFTC to target the digital asset space. However, the IMF also shared its views on the digital asset space, publishing a paper on digital assets and effective policies to manage risks related to cryptocurrencies.
News from the SEC and the New York Department of Financial Services (NYDFS) opposing Binance. US takeover of Voyager was also bearish. Binance. US plans to acquire Voyager helped ease the risk of contagion in late 2022.
The NASDAQ Composite Index rose 0.72% in response to the figures and corporate earnings. However, the NASDAQ mini is down 16 points this morning.
Today, the BTC Fear & Greed Index fell from 59/100 to 53/100. Significantly, the index returned to the neutral zone for the first time since February 15.
After falling into the neutral zone, the index should return to the greed zone to support a BTC breakout of $25,000 to $30,000 as a target. However, a return of the index to the zone of fear would indicate a reversal of the bullish trend in the short term.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to move through the $24,057 pivot to target the first major resistance level (R1) at $24,493 and Thursday’s high of $24,600. A return to $24,500 would signal a breakout session. Crypto news wires and US stats should 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 $25,035, and resistance at $25,500. The third main resistance level (R3) is located at $26,013.
A move through the 50-day EMA ($24,053) would support a break of R1 ($24,493) to target R2 ($25,035) and $25,500. However, a drop through the 100-day EMA ($23 630) and S1 ($23,515) would give the bears a run at S2 ($23,079) and the 200-day EMA ($22,804). A move through the 50-day EMA ($24,053) would send a bullish signal.
By Audy Castaneda
