Key Insights: – On Friday, bitcoin (BTC) extended the losing streak to six sessions, with a 10.17% slide to end the day at $20,835.- Market angst over Fed monetary policy, stemming from improved US economic indicators, sent the crypto market into a tailspin.- In response to the BTC sell-off, the Bitcoin Fear & Greed Index fell from 33/100 to 29/100, reflecting investor anxiety.On Friday, bitcoin (BTC) slid by 10.17%.Following a 0.55% fall on Thursday, BTC ended the day at $2,835.
Notably, BTC extended the losing streak to six sessions and ended the day at sub-$21,000 for the first time since July 17.Bearish from the start of the day, BTC slid from a high of $23,199 to a final hour low of $20,790.
The extended sell-off saw BTC fall through the day’s Major Support Levels.
There were no crypto news events to drive the sell-off, leaving FOMC member chatter to weigh on crypto investor appetite.Following a string of better-than-expected US economic indicators, fears of a US economic recession have subsided.However, the numbers have drawn out hawkish FOMC member commentary that sent riskier assets into the red.FOMC member James Bullard leaned in favor of a 75-basis point hike.FOMC member Mary Daly, speaking early in the Thursday session, reportedly favored a 50 or 75 basis point move.Significantly, both also talked of a rise-and-hold strategy rather than reversing course.The NASDAQ 100 ended the day down by 2.01%, with BTC continuing the slide beyond the US market closing bell.Bitcoin Fear & Greed Index Inches towards the Extreme Fear Zone Today, the Fear & Greed Index fell from 33/100 to 29/100.
The Index had avoided sub-30 since late July despite the current BTC downward trend.With the US markets closed and no economic indicators to consider, BTC and the broader market will likely remain under pressure.The Index needs to return to 40 to support a BTC return to $25,000.However, a fall into the Extreme Fear zone would see BTC at sub-$20,000 to give the bears a look at the current year’s low of $17,605.
Bitcoin (BTC) Price Action At the time of writing, BTC was up 1.05% to $21,053.
A bullish start to the day saw BTC rise from an early low of $20,794 to a high of $21,187.Technical Indicators BTC needs to move through the $21,608 pivot to target the First Major Resistance Level (R1) at $22,426 and eye a return to $23,000.BTC would need a bullish morning session to support a move through to $22,000.
An extended crypto rally would see BTC test resistance at $23,500 though BTC will likely fall short of the Second Major Resistance Level (R2) at $24,017.The Third Major Resistance Level (R3) sits at $26,426.Failure to move through the pivot would leave the First Major Support Level (S1) at $20,017 in play.In case of another extended sell-off, BTC would test the Second Major Support Level at $19,199 and support at $19,000.The Third Major Support Level (S3) sits at $16,790.Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal.This morning, bitcoin sat below the 200-day EMA, currently at $23,139.After a bearish cross through the 100-day EMA, the 50-day EMA closed in on the 200-day EMA.
The 100-day EMA narrowed to the 200-day EMA, delivering bearish price signals.A bearish cross of the 50-day EMA through the 200-day EMA would bring sub-$20,000 into play.For the bulls, a BTC move through R1 ($22, 426) and the 200-day EMA ($23,139) would ease selling pressure.
However, a pullback from the 200-day EMA would leave sub-$20,000 in view.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 the most recent low of $20,790 would support a move through the 200-day EMA to ease selling pressure.A BTC return to $25,000 would give the bulls a run at the June high.From $32,000, BTC should have a clear run at the May high of $40,004.
For the bears, the June 18 low of $17,601 remains the target.A fall through $20,000 and the July low of $18,768 would likely test investor resilience.
On Friday, BTC fell through the August 4 low of $22,390.The next target is the July 26 low of $20,724.A fall to sub-$20,500 would then bring the July low of $18,913 into play.
BTC will need to avoid the July 26 low to begin a recovery..
