A 3-day winning streak came to an end for Bitcoin ( BTC ) on Sunday.Following a 1.11% gain on Saturday, Bitcoin ended the day down by 0.75% to $37,914.For the Bitcoin bulls, 5-days in the green from 7 would have been of little comfort.In the week ending 30th January, Bitcoin rose by just 4.4%, only partially reversing a 15.7% slide from the week prior.
Following a NASDAQ fueled 1.54% rise on Friday, Bitcoin and the broader crypto market had found further support on Saturday.With plenty of uncertainty ahead though, it was a different story on Sunday, with the crypto majors struggling.The Bitcoin Fear & Greed Index 5 days in the green from 7 did lead to a rise in the Bitcoin Fear & Greed Index , however.
Continuing its recovery from a 23rd January 11/100, the Index rose to 29/100 on Sunday, level with 3rd January’s high.
A pullback to 20/100, at the time of writing, reflects the level of uncertainty that Bitcoin investors continue to face.Currently sitting in the red-zone, the index had last been out of the red zone on 28th December.The Index had stood at 41/00, which was on the cusp of the neutral yellow zone, Back in November, the Index had risen to 84/100 on 9th November, however, before hitting reverse.A move back through to 30/100 and into the orange zone would present a buying opportunity.
Key Drivers for the Week Ahead For Bitcoin and the broader market, two key market forces remain.Market sentiment towards FED monetary policy and impact on appetite for riskier assets remains one key driver.The second area of focus is regulatory chatter and activity.A particularly busy economic calendar this week could guarantee a FED rate hike in March.
More significantly, however, is the prospect of a sharp rise in interest rates.U.S nonfarm payrolls on Friday will be the key stat of the week.On the regulatory front, the markets will be looking out for updates on the SEC-Ripple case.There is also the anticipation of a White House Executive Order on cryptos to consider.With key jurisdictions eager to develop a global crypto regulatory framework, the White House Executive Order could be the beginning of a period of intense scrutiny.Bitcoin Price Action At the time of writing, Bitcoin was down by 0.40% to $37,761.A move back through the day’s $37,901 pivot would support a run at Sunday’s high $38,403 and the first major resistance level at $38,416.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 $38,918, however.The third major resistance level sits at $39,935.Failure to move back through the day’s pivot would bring the first major support level at $37,399 into play.Barring an extended sell-off on the day, Bitcoin should avoid sub-$36,500.The second major support level at $36,884 should limit the downside.Looking at the EMAs, the signal remains bearish.
The 50-day EMA has flattened on the 100, with the 100-day EMA pulling back from the 200-day EMA.At the time of writing, Bitcoin continued to hold above the 50-day EMA, however, which sat at $37,666.A move through the the 100-day EMA at $38,862 would bring $40,000 back into play..
