- Bitcoin (BTC) rallied by 7.68% on Wednesday to wrap up the day at $22,890.
- Market reaction to the Fed’s 75-basis point rate hike and hopes of a slower pace of interest rate hikes delivered support to riskier assets.
- The Bitcoin Fear & Greed Index increased from 28/100 to 32/100, supported by the BTC visit to $23,000.
On Wednesday, bitcoin (BTC) rallied by 7.68%. Reversing a 0.23% decline from Tuesday, bitcoin ended the day at $22,890. Bitcoin rose for just the second time in eight sessions.
A mixed start to the day saw BTC fall to an early low of $21,050 before making a move.
Steering clear of the First Major Support Level at $20,880, BTC rallied to a high of $23,102 before easing back.
BTC broke through the day’s Major Resistance Levels to end the day at $22,890.
On Wednesday, bitcoin tracked the NASDAQ before extending gains post the US market close. The NASDAQ 100 rallied by 4.06%. This morning, the NASDAQ 100 Mini was down 56.5 points, with US GDP numbers in focus.
Bitcoin Fear & Greed Index Jumps in Reaction to the Fed
Today, the Fear & Greed Index increased from 28/100 to 32/100. The Index marked the third rise in seven sessions, supported by the BTC return to $23,000.
Market reaction to the Fed’s 75-basis point rate hike and Fed Chair Powell’s post-decision comments delivered support. With the rate hike in line with expectations, hopes of a slower pace of rate hikes supported the breakout session and the Index rise to 32/100.
For the bulls, the next target is the “Neutral” zone, which starts at 46/100. The Index last sat in the “Neutral” zone on April 6, when bitcoin stood at $45,000 levels.
A move through last week’s high of 34/100 would signal improved investor sentiment and a possible bitcoin move towards $30,000.
Today, US GDP numbers for Q2 will need to ease fears of a US recession to support the Index at current levels.
Bitcoin (BTC) Price Action
At the time of writing, BTC was down 0.47% to $22,851.
BTC needs to avoid the $22,346 pivot to target the First Major Resistance Level (R1) at $23,645 and resistance at $24,000.
BTC would need a bullish session to support a breakout from the Wednesday high of $23,102.
An extended rally would test the Second Major Resistance Level (R2) at $24,397 and resistance at $25,000. The Third Major Resistance Level (R3) sits at $26,451.
A fall through the pivot would bring the First Major Support Level (S1) at $21,593 into play.
Barring an extended sell-off, BTC should avoid sub-$21,000 and the Second Major Support Level (S2) at $20,296.
The Third Major Support Level (S3) sits at $18,243.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 200-day EMA, currently at $22,087.
The 50-day narrowed to the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA, both bullish BTC price signals.
A bullish cross of the 50-day EMA through the 200-day EMA would support a run at $25,000. However, holding above the 200-day EMA would be the key to another upswing.
Looking at the trends, BTC would need a move through the July high of $24,276 and $25,000 to target the June high of $31,956. A bullish cross of the 100-day EMA through the 200-day EMA would support a run at the June high.
From $31,200, BTC should have a clear run at the May high of $40,004.
For the bears, the June 18 low of $17,601 would be the next target, with a fall through the July low of $18,768 likely to test investor resilience. A bullish cross of the 50-day EMA through the 200-day EMA would bring the July high into play.