By Franklin Smith
The Bitcoin Fear and Greed Index dropped to 10/100 this morning. The pullback presented another bearish sign, with technical indicators displaying red.
- Bitcoin saw bearishness on Monday, losing 1.49% to close the day near $20,718.
- BTC and the overall cryptocurrency market following NASDAQ’s plunge, with the equity market witnessing choppy actions early on the week.
- Technical indicators flash bearish, with BTC beneath the 50 Exponential Moving Average.
Bitcoin dropped 1.49% on Monday, extending Sunday’s 2.06% fall to end the day near $20,718. Meanwhile, a bullish morning had Bitcoin surging to a $21,505 high before reversing. Failure to topple the initial massive resistance at $21,605 saw BTC sliding towards the $20,553 lows.
Bitcoin briefly touched the first crucial support at $20,728 before partial recoveries to $20,718. Analysts expect more influence this week as the market tracked NASDAQ effects since the past week.
Meanwhile, crude oil price surges tested the strength of risky assets. Commodity prices contribute to market angst. Meanwhile, Crude oil reacted to the G7 news. These nations plan new sanctions, including capping Russian oil prices.
The increase in crude oil prices catalyzed fears of escalated inflation that would mean aggressive actions from the Fed as it tries to cool the situation. Such narratives weighed on risky assets.
Fear and Greed Index Supports Another Sub-$20K Return
Early sessions today saw the BTC Fear and Greed Index plunging to 10/100 from 12/100. The latest pullback opened the path to sub-10/199 and 19 June lows of 6/100. Current readings support a BTC return to sub-$20K.
Investors might need to pause their hopes about the Index returning to 25/100, with prevailing trends suggesting further losses in Bitcoin. Meanwhile, the Index never visited the Fear Region since 5 May, when BTC traded at $36,630.
BTC Price Action
BTC traded near $20,823 at this publication, gaining 0.51% within the past day. A mixed morning saw the crypto declining to $20,711 before climbing to $20,850. Bitcoin didn’t test its resistance and support zones.
Bitcoin should overcome the pivot at $20,924 to test the initial massive resistance at $21,299 before heading to the $21,505 Monday high. Enormous market support remains essential for BTC’s return to $21K. Meanwhile, weakness at the pivot would see BTC hitting the initial support at $20,350.
Excluding continued plunges, BTC should avoid $19.5K. Meanwhile, the second crucial support at $19,978 should prevent further downside. The 3rd foothold stands at $19,021. Bitcoin stayed in bearish hands as it hovers beneath the 50-dayEMA, currently around $21,138.