Bitcoin down_up

Bitcoin (BTC) Fear & Greed Index Jumps to Highest Level Since April 6

Key Insights:

  • Bitcoin (BTC) slipped by 0.36% on Friday. A bullish session saw BTC strike a new July high of $24,416 before falling into the red.
  • US economic indicators and the NASDAQ 100 delivered support, with the late pullback coming after the US market close.
  • The Bitcoin Fear & Greed Index jumped from 32/100 to 42/100, supported by the shift in sentiment toward Fed monetary policy.

On Friday, bitcoin (BTC) slipped by 0.36%. Partially reversing a 3.90% gain from Thursday, bitcoin ended the day at $23,769. Bitcoin fell for the seventh time in ten sessions.

A bullish morning saw BTC rise to a new July high of $24,416.

Coming within range of the First Major Resistance Level at $24,505, BTC slid to a low $23,444 before briefly revisiting $24,100.

Despite the pullback, BTC steered clear of the First Major Support Level at $22,901.

On Friday, economic indicators from the US delivered the NASDAQ 100 with support. In June, inflationary held relatively steady while personal spending picked up, supporting riskier assets.

In response, the NASDAQ 100 rose by 1.88%, following a 1.08% gain on Thursday.

NASDAQ correlation
BTC-NASDAQ 300722 5 Minute Chart

Bitcoin Fear & Greed Index Jumps Despite BTC Loss

Today, the Fear & Greed Index jumped from 32/100 to 42/100, the highest level since April 6. Significantly, the Index approached the border of the neutral zone, which starts at 46/100.

Fear & Greed Index
Fear & Greed 300722

April 6 was the last time the Index sat in the “Neutral” zone, when bitcoin stood at $45,000 levels.

Fear & Greed Index April high
Fear & Greed Chart 300722

Easing fears of another 75-basis point Fed rate hike supported the Index rise to 42/100. US economic indicators led the markets to price in a 50-basis point hike in September, following the US economic contraction in Q2.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.43% to $23,871. A mixed start to the day saw BTC rise to an early high of $23,972 before falling to a low of $23,768.

BTC daily
BTCUSD 300722 Daily Chart

Technical Indicators

BTC needs to move through the $23,879 pivot to target the First Major Resistance Level (R1) at $24,310 and the Friday high of $24,416.

BTC would need a bullish session to support a return to $24,000.

An extended rally would test the Second Major Resistance Level (R2) at $24,847 and resistance at $25,000. The Third Major Resistance Level (R3) sits at $25,820.

Failure to move through the pivot would bring the First Major Support Level (S1) at $23,337 into play.

Barring an extended sell-off, BTC should avoid sub-$23,000 and the Second Major Support Level (S2) at $22,906.

The Third Major Support Level (S3) sits at $21,932.

BTC pivot the key
BTCUSD 300 722 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 50-day EMA, currently at $22,790.

After a bullish cross on Thursday, the 50-day pulled away from the 200-day EMA, with the 100-day EMA converging on the 200-day EMA, both bullish BTC price signals.

A bullish cross of the 100-day EMA through the 200-day EMA would support a run at $26,000. However, holding above the 50-day EMA would be the key to another upswing.

EMAs bullish
BTCUSD 300722 4 Hourly

Looking at the trends, BTC would need a move through the July high of $24,416 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 100-day EMA through the 200-day EMA would support a breakout from $25,000.

Trends
BTCUSD 300722 Trend Analysis