Key Findings:
- Bitcoin (BTC) continued its downtrend from last week’s peak at $24,276 with a 5.66% loss to end the day at $21,306.
- Investor nervousness about the Fed, Wednesday’s rate hike and the US economy weighed.
- The Bitcoin Fear & Greed Index slipped to 26/100 from 30/100, reflecting bearish sentiment.
Bitcoin (BTC) slipped 5.66% on Monday. Bitcoin reversed a 0.59% gain from Sunday to end the day at $21,306. Bitcoin fell for the fifth time in six sessions, with news that Tesla dumped 75% of its BTC holdings prompting the reversal
Bearish all day, BTC slipped from a high of $22,661 to a late low of $21,268.
The extended sell-off pushed BTC through the first major support level at $22,233 and the second major support level at $21,880 to end the day deep in the red.
There have been no US economic indicators or central bank speeches sending the crypto market into the red.
Bitcoin tracked the NASDAQ 100 during the US session ahead of a sell-off after the US market close.
On Monday, the NASDAQ 100 was down 0.43%, with the NASDAQ 100 Mini down 61.5 points at press time.
BTC-NASDAQ 260722 5-minute chart
Bitcoin Fear & Greed Index avoids the extreme fear zone
Today the Fear & Greed Index fell from 30/100 to 26/100. The index marked its fourth loss in five sessions, weighed down by BTC reversal.
Fear & Greed Index 260722
Investor fears about the Fed, fears of a US recession and the Tesla postponement remained headwinds for the market.
Despite the market fears, the index avoided the Extreme Fear zone, trading below 25/100.
US economic indicators and the Fed’s monetary policy decision could pull the index back into the extreme fear zone. Such a result could see BTC fall back below $20,000.
For the bulls, the next target is the “neutral” zone, which starts at 46/100. The index was last in the “neutral” zone on April 6, when Bitcoin stood at $45,000 levels.
A move above last week’s high of 34/100 would signal improved investor sentiment and a possible bitcoin move towards $30,000.
Bitcoin (BTC) price action
At the time of writing, BTC was down 0.01% to $21,303.
A range-bound start to the day saw BTC surge to an early high of $21,340 before falling to a low of $21,226.
BTCUSD 260722 daily chart
Technical indicators
BTC needs to move through the $21,744 pivot to target the First Major Resistance Level (R1) at $22,222 and Monday’s high of $22,661.
BTC would need a bullish session to support a breakout of $21,750.
An extended rally would test resistance at $23,000 and the second major resistance level (R2) at $23,138. The third major resistance level (R3) is located at $24,531.
If the pivot is not breached, the First Major Support Level (S1) would come into play at $20,827.
Barring a prolonged selloff, BTC should avoid going below $20,000. The second major support level (S2) at $20,353 should limit the downside.
The third major support level (S3) is at $18,959.
BTCUSD 260722 hourly chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bearish signal. Bitcoin was below the 100-day EMA this morning, currently at $21,848.
The 50-day EMA tightened to the 200-day EMA with the 100-day EMA pulling back from the 200-day EMA, both bearish BTC price signals.
A bearish cross of the 50-day EMA through the 200-day EMA would test the $20,000 support. However, a break of the 100-day EMA would support a return to $22,000 to test the resistance at the 200-day EMA currently located at $22,129 and R1.
BTCUSD 260722 4 hour chart
Looking at the trends, BTC would need to clear the July highs of $24,276 and $25,000 to reach the June high of $31,956. A bullish cross from the 100-day EMA through the 200-day EMA would support a rally to the June high.
For the bears, the June 18 low of $17,601 would be the next target, with a dip below the July low of $18,768 likely to test investor resilience. A bearish cross of the 50-day EMA through the 200-day EMA would put below $20,000 in sight.
BTCUSD 260722 trend analysis
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.