It was a 3rd consecutive day in the green for Bitcoin ( BTC ) on Saturday.Following a NASDAQ fueled 1.54% rise on Friday, Bitcoin gained 1.11% to end the Saturday at $38,180.For the Bitcoin bulls, Bitcoin has risen 6-days out of 7, as the recovery from last Monday’s visit to sub-$33,000 continues.It was a relatively rangebound day, however, with resistance at $39,000 pegging Bitcoin back from a run at $40,000 on the day.Solana (SOL) Finds Support Amidst Fresh Outage News Elsewhere, Ethereum ( ETH ) continued to find strong support, rising by 2.23% as it makes its way back to $3,000.Solana ( SOL ) led the way, however, rallying by 5.29%.Touted to be the next big thing in crypto, outages have weighed on Solana amidst the latest crypto market correction.Market volatility was attributed to the latest downtime, which is a bad combination for crypto traders.
Outages at times of market stress leave traders exposed, which can lead to significant losses.Last week we had looked at Solana and market reaction to a 3rd distributed denial-of-service (DDoS) attack in less than 6-months.A reported 48-hour outage had left users with forced liquidations and heavy losses.Year-to-date, Solana was down 43.4% to Saturday’s $96.16 close.As Solana and the broader market continue to recover from the January floor, another outage would likely bring January’s low $80.79 and sub-$80 into play.Solana last sat at sub-$80 back in August, on its run to a November ATH $259.95.
The Bitcoin Fear & Greed Index A 3rd consecutive day in the green for Bitcoin delivered further upside for the Bitcoin Fear & Greed Index .Continuing its recovery from a 23rd January 11/100, the Index increased from 24/100 to 29/100 on Saturday.
Hitting its highest level since 3rd January, the latest upward trend could present a buying opportunity.A move out of the red zone to 30/100 will be a key move.The index currently does sits in the red, however, reflecting the market’s bearish sentiment.A move back through to 30/100 and into the orange would reflect a shift in sentiment and a buying opportunity.
On 28th December, the Index had stood at 41/00, which was the last time the Index had been out of the red zone.Bitcoin Price Action At the time of writing, Bitcoin was down by 0.89% to $37,840.A move through the day’s $38,142 pivot would support a run at Saturday’s high $38,898 and the first major resistance level at $38,936.An extended crypto rally, however, would bring $40,000 levels into play for the first time since 21st January.
Bitcoin would need to break through the second major resistance level at $39,692, however.Failure to move through the day’s pivot would bring the first major support level at $37,386 into play.Barring an extended sell-off on the day, Bitcoin should avoid sub-$37,000 and the second major support level at $36,592.Looking at the EMAs, the signal has become less bearish.
Bitcoin continues to hold above the 50-day EMA, which has narrowed on the 100-day EMA.A continued narrowing would support a move back through to $39,000 levels.At the time of writing, the 100-day EMA stood at $38,981.Market sentiment towards imminent crypto oversight , however, will likely remain a test for Bitcoin and the majors.Regulatory chatter and activity have been on the silent side over the weekend.This is unlikely to be the case in the week ahead..
