Key Insights: – Bitcoin (BTC) rallied by 10.61% on Friday to end the day at $21,373.- There were no economic indicators or hawkish Fed speeches to spook investors.- The Bitcoin Fear & Greed Index rose from 22/100 to 28/100, taking the Index out of the Extreme Fear zone.On Friday, bitcoin (BTC) rallied 10.61%.Following a 0.19% gain on Thursday, BTC ended the day at $21,373.A range-bound start to the day saw BTC slip to an early low of $19,304.Avoiding the First Major Support Level (S1) at $19,081, BTC surged to a final hour high of $21,590.BTC broke through the day’s Major Resistance Levels to wrap up the day at $21,000 for the first time since August 25.
There were no US economic indicators to spook investors, leaving BTC in the hands of market risk sentiment and the NASDAQ 100.The crypto-NASDAQ correlation was evident throughout the week and continued into Friday.Dip buyers looked beyond the doom and gloom, driving demand for riskier assets.The NASDAQ 100 rallied by 2.11% to end the week up 4.14%.
Bitcoin Fear & Greed Index Jumps Out of the Extreme Fear Zone Today, the Fear & Greed Index jumped from 22/100 to 28/100.The shift in investor sentiment continued this morning.The BTC return to $21,000 eased investor fear.With the Index moving out of the Extreme Fear zone, an upward trend would support a return to 40/100 and a BTC move through to $25,000.However, 20/100 remains a key level, with an Index decline to sub-20 likely to bring sub-$18,000 into play.Bitcoin (BTC) Price Action At the time of writing, BTC was down by 0.25% to $21,320.
A mixed start to the day saw BTC rise to an early high of $21,392 before falling to a low of $21,179.Technical Indicators BTC needs to avoid the $20,756 pivot to target the First Major Resistance Level (R1) at $22,207.A bullish morning session would support a breakout from the Friday high of $21,590.
Another extended crypto rally would see BTC test the Second Major Resistance Level (R2) at $23.042.The Third Major Resistance Level (R3) sits at $25,328.However, with the US markets closed for the weekend, BTC will need to make an early move to maintain the upward momentum.A fall through the pivot would bring the First Major Support Level (S1) at $19,921 into play.
An extended sell-off could see BTC test support at $19,500 before any recovery.However, BTC should avoid the September low of $18,549 and the Second Major Support Level (S2) at $18,470.The Third Major Support Level (S3) sits at $16,184.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal.This morning, bitcoin sat above the 200-day EMA, currently at $21,022.The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish price signals.A BTC hold above the 200-day EMA would bring R1 ($22,207) into view.
For the bulls, a bullish cross of the 50-day EMA through the 100-day EMA would support another breakout session.However, a fall through the 200-day EMA and the 100-day EMA ($20,313) would bring the 50-day EMA ($19,970) and S1 ($19,921) into play.Trend Analysis Looking at the trends, BTC would need a move through the August high of $25,203 and $25,500 to target the June high of $31,956.Avoiding a fall through the EMAs and the September low of $18,549 would support a move back towards $25,000.
However, a BTC fall through the September low of $18,549 would bring sub-$18,000 and the June low of $17,601 into play..
