It was a bearish Monday, with BTC falling 0.25% to end the day at $23,502. Nervousness over regulatory risk, as well as fears of the Fed, left BTC and the broader crypto market in the red, and Binance news added to the bearish sentiment. The Fear & Greed Index remained within the neutral zone despite the bearish BTC session, rising from 50/100 to 53/100.
On Monday, Bitcoin (BTC) fell 0.25%. Partially reversing a 1.65% gain on Sunday, BTC ended the day at $23,502. The bearish session left BTC below the $24,000 level for the third day in a row.
After a hectic morning, BTC rose to a high of $23,891 in mid-afternoon. BTC broke above the first major resistance level (R1) at $23,795 before pulling back. The reversal caused BTC to slide to a late low of $23,131. BTC briefly fell through the first major support level (S1) at $23,205 before ending the day at $23,502.
Nervousness over regulatory risk returned on Monday, with investors digesting the G20 news and post-G20 commentary giving investors an idea of what to expect. Although the G20 did not reach a total ban, talk of the introduction of strict regulatory measures raises uncertainty.
Amid intense regulatory and lawmaker scrutiny, a Forbes report of Binance transferring $1.8 billion of user assets to hedge funds tested sentiment on Monday. Binance CEO CZ had yet to respond to the report.
In the afternoon session, US economic indicators and the NASDAQ Composite Index provided brief relief. US durable goods core orders rose 0.7% in January, reversing a 0.4% decline since December. Economists forecast an increase of 0.1%. Orders for ex-air non-defense Fed preferred goods rose 0.8%, reversing a 0.3% decline since December.
Fear & Greed Index Rises Despite Bearish BTC Session
Today, the BTC Fear & Greed Index rose from 50/100 to 53/100. Significantly, the index avoided the fear zone, despite BTC failing to reach the $24,000 level for the third session in a row. Crypto market headwinds weighed on investor sentiment, with Fed monetary policy and regulatory risk in the spotlight.
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.
The Day Ahead
Investors should continue to monitor crypto news wires for regulatory activity and chatter from US lawmakers. The updates from Binance and FTX should be noted, along with news of the ongoing SEC vs. Ripple case.
US economic indicators and the NASDAQ Composite Index will influence the afternoon session. The US Consumer Confidence numbers for February will attract a lot of interest. A rebound in consumer confidence would reassure the Fed to implement more aggressive measures to curb inflation.
By Audy Castaneda
