It was a bearish Sunday, with BTC slipping 1.42% to end the day at $24,284. Fed fear and regulatory risk sent investors into profit ahead of an uncertain week. The Fear & Greed index remained within the Greed zone, despite falling from 60/100 to 58/100.
On Sunday, bitcoin (BTC) fell 1.42%. Reversing a 0.21% gain since Saturday, BTC ended the week up 11.53% to $24,284. Despite the bearish session, BTC revisited the $25,000 handle for the third time in four sessions.
After a morning of range bound, BTC rose to a late afternoon high of $25,209. BTC broke above the first major resistance level (R1) at $24,857, and the second major resistance level (R2) at $25,082, before pulling back.
The reversal caused BTC to slide to a late low of $24,221. BTC fell through the first major support level (S1) at $24,429, to close the day at $24,284. The second major support level (S2), at $24,226, cushioned the decline.
Fed Fear and Regulatory Risk Resurfaced to Send BTC into the Red
Investors locked in gains on Sunday night to leave BTC in the red for the session. While scrutiny by US lawmakers of the SEC’s moves against crypto platforms provided support midweek, regulatory risk lingered.
Following the collapse of FTX, investors are expecting a change in the regulatory landscape that could materially affect the US crypto market. Last week, the Wall Street Journal reported that Binance must pay fines following an investigation by the Department of Justice and the CFTC on platform operations.
Fed fear continues to be a headwind for the crypto market. Following the latest round of US economic indicators and the Fed talk, markets are betting on a more aggressive interest rate path. The Fed could raise rates to a maximum of 5.5% and hold them for longer, to bring inflation to target.
Fear & Greed Index Remains Greedy Despite BTC Pullback
Today, the BTC Fear & Greed Index fell from 60/100 to 58/100. However, the Index remained within the Greed zone, with BTC avoiding a return below $24,000 for a second session providing support.
After returning to the Greed zone, the Index should avoid the Neutral 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.
SEC activity and conversations by US lawmakers will continue to be the key factors in the near term.
Bitcoin (BTC) Price Action – Technical Indicators
BTC settled above the 50-day EMA ($23,670). The 50-day EMA has broken further away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA, providing bullish signals.
A hold above S1 ($23,934) and the 50-day EMA ($23,670) would support a break out of R1 ($24,922) to target R2 ($25,559) and $26,000. However, a drop through S1 ($23,934) and the 50-day EMA ($23,670) would give bears a run at S2 ($23,583). A drop through the 50-day EMA ($23,670) would send a bearish signal.
By Audy Castaneda
