Bitcoin (BTC) Fear and Greed Index on the Border of the “Fear” Zone

Key insights:

  • Bitcoin (BTC) rallied 1.79% on Saturday to extend its winning streak to four sessions.

  • The market sentiment on US retail sales figures and further reaction to the FOMC member chat offered support.

  • The Bitcoin Fear & Greed Index increased from 21/100 to 24/100, reflecting improved investor sentiment.

On Saturday, bitcoin (BTC) increased by 1.79%. After gaining 1.21% on Friday, BTC ended the day at $21,199. It was the fourth straight day in the green, with market sentiment on Fed monetary policy supportive.

A bearish start to the day saw BTC drop to as low as $20,481 before making the move.

Within range of the first Major Support at $20,405, BTC rallied to a high of $21,575.

BTC broke through the first Key Resistance at $21,215 before falling back below $21,200. Despite the late pullback, BTC has held onto a $21,000 handle for the first time since July 9.

With US markets closed, FOMC members chat from Friday and upbeat US retail sales figures continue to provide support.

Bitcoin Fear & Greed Index Enters “Fear” Zone

Today, Fear & Greed Index increased from 21/100 to 24/100. Matching the Index’s levels from July 9 and 10, the Index stands at its highest level since May 5 (27/100).

The latest move back into the “Fear” zone, which began on 100/25, has sent BTC back towards $21,000.

The bulls will now look for a return to the “Fear” zone to support BTC running at $25,000.

Fear & Greed 170722

Fear & Greed 170722

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.41% to $21,285.

The day didn’t go well as BTC dropped to an initial low of $21,188 before rallying to a high of $21,338.

BTCUSD 170722 Daily Chart

BTCUSD 170722 Daily Chart

Technical Indicators

BTC needs to avoid $21,086 axis to target the first Major Resistance (R1) at $21.689.

BTC will need a bullish session to support a breakout from Saturday’s high of $21,575.

A prolonged rally will test the Second Major Resistance (R2) at $22,180 and resistance at $25,000. The third major resistance (R3) is at $23.273.

A drop across the pivot will bring the first Major Support Level (S1) at $20,595 into play.

Preventing a prolonged sell-off, Second Major Support Level (S2) at $19,992 will keep BTC from falling below $19,500.

The third major support (S3) is at $18.897.

BTCUSD 170722 Hourly Chart

BTCUSD 170722 Hourly Chart

Look at EMAs and the 4-hour candlestick chart (below), which is a bullish signal. This morning, bitcoin was above the 100-day EMA, currently at $20,644.

The 50-day EMA closed above the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA; positive BTC indicators.

A bullish crossover of the 50-day EMA over the 100-day EMA will bring in $22,000.

A hold above the 100-day EMA and a break out of the R1 and the 200-day EMA, currently at $21.875, will target R2.

BTCUSD 170722 4-Hour Chart

BTCUSD 170722 4-Hour Chart

On the basis of trend analysis, bitcoin will need to move past the May 30 high of $32,503 to target the March 28 high of $48,192. In the short term, the $25,000 resistance is likely to be the first test if the uptrend resumes.

For the bears, the June 18 low of $17,601 will be the next target, with a drop to the current week low of $18,919 likely to test the home’s resilience invest.

Here article Originally posted on FX Empire

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