It was a bearish end to February, with BTC slipping 1.53% to end the day at $23,142. Fed fear and regulatory risk jitters continued to be the theme, with news from Robinhood (HOOD), Visa (V) and Mastercard (MA) adding to the bearish sentiment. The Fear & Greed Index remained within the neutral zone despite the bearish BTC session, falling from 53/100 to 50/100.
On Tuesday, Bitcoin (BTC) fell 1.53%. Following a 0.25% loss on Monday, BTC ended the month up 0.03% to $23,142. The bearish session left BTC below the $24,000 level for the fourth day in a row.
After a hectic morning, BTC surged to a high of $23,615 by late afternoon. Failing to reach the first major resistance level (R1) at $23,885, BTC fell to a late low of $23,066. BTC briefly fell through the first major support level (S1) at $23,125 to test support at $23,000 before ending the day at $23,142.
Crypto news leads and the NASDAQ Composite Index weighed on investor sentiment on Tuesday.
The news that the SEC issued a subpoena to Robinhood (HOOD) set off alarm bells. Rumors that Visa (V) and Mastercard (MA) were rethinking their crypto plans were also bearish. Cryptocurrency adoption remains a key pricing driver. A change in investor sentiment on Main Street towards cryptocurrencies would have a significant impact on growth and price action.
However, fear of the Fed continued to weigh on investor confidence despite disappointing US economic indicators. In February, the CB Consumer Confidence Index fell from 106.0 to 102.9, with housing sector data also bearish.
The Day Ahead
Economic indicators will attract interest. China’s private sector PMIs to weigh ahead of US session Weak numbers from China are expected to reignite recession fears and test appetite for riskier assets.
US economic indicators and the NASDAQ Composite Index will influence the afternoon session. The US manufacturing PMI numbers for February will generate a lot of interest. An unexpected drop in the ISM manufacturing PMI would be bearish. However, the talk from FOMC members will also affect investor appetite throughout the day.
The crypto news wires are expected to provide guidance. Investors should monitor crypto newswires for regulatory activity and chatter from US lawmakers. Updates from Binance and FTX should be noted, alongside news of the ongoing SEC vs. Ripple case.
Fear & Greed Index Reverses Bearish BTC Session
Today, the BTC Fear & Greed Index fell from 53/100 to 50/100. Significantly, the index avoided the fear zone despite BTC failing to reach the $24,000 level for the fourth session in a row. Regulatory activity and fear of the Fed continued to weigh on investor confidence. On Tuesday, BTC saw red for the seventh time in eight sessions.
After falling into the neutral zone, the index must return to the greed zone to support a breakout of BTC from $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.
By Audy Castaneda
