- On Wednesday, bitcoin (BTC) prolonged the dropping streak to 4 periods, with a 2.19% fall to finish the day at $23,333.
- With recession fears lingering, US financial indicators and the FOMC assembly minutes added to the market angst.
- The Bitcoin Fear & Greed Index slid from 41/100 to 30/100, signaling a deterioration in crypto investor sentiment.
On Wednesday, bitcoin (BTC) fell by 2.19%. Following a 1.60% decline on Tuesday, BTC ended the day at $23,333. Notably, BTC ended the day at sub-$24,000 for the second time in 5 periods as BTC prolonged its dropping streak to 4. BTC additionally fell in need of $25,000 for the second consecutive session.
A bullish begin to the day noticed BTC rise to an early excessive of $24,440. BTC broke by means of the First Major Resistance Level (R1) at $24,167 earlier than sliding to a low of $23,170.
BTC fell by means of the First Major Support Level (S1) at $23,612 and the Second Major Support Level (S2) at $23,368 to finish the day at $23,333.
There had been no crypto news occasions to affect, leaving BTC and the broader market within the palms of market danger sentiment. US financial indicators and the US FOMC assembly minutes weighed on riskier belongings. With recession fears lingering, US retail gross sales had been flat in July.
The FOMC assembly minutes offered temporary assist earlier than the markets thought-about the Fed’s charge path trajectory, which despatched the NASDAQ 100 again into the purple.
On Wednesday, the NASDAQ 100 fell by 1.25%, pressuring the crypto market late within the session.
BTC-NASDAQ 180822 5-Minute Chart
Bitcoin Fear & Greed Index Tumbles Deep into the Fear Zone
Today, the Fear & Greed Index slid from 41/100 to 30/100. Another bitcoin sell-off and a failure to revisit $25,000 weighed on investor sentiment. Uncertainty over the worldwide financial outlook and Fed financial coverage stay crypto headwinds.
Later right this moment, Philly Fed Manufacturing and weekly jobless claims will present additional path.
The Index must return to 40 to assist a BTC return to $25,000. However, having failed to maneuver into the Neutral zone for the primary time since April 6, the most recent slide places the Extreme Fear zone in view.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up 0.46% to $23,439.
BTCUSD 180822 Daily Chart
BTC wants to maneuver by means of the $23,648 pivot to focus on the First Major Resistance Level (R1) at $24,125 and the Tuesday excessive of $24,247.
BTC would wish a bullish begin to the session to assist a return to $24,000.
An prolonged crypto rally would see BTC check the Second Major Resistance Level (R2) at $24,918 and resistance at $25,000. The Third Major Resistance Level (R3) sits at $26,188.
Failure to maneuver by means of the pivot would deliver the First Major Support Level (S1) at $22,855 into play. Barring an prolonged sell-off, BTC ought to keep away from sub-$22,500 and the Second Major Support Level (S2) at $22,378.
The Third Major Support Level (S3) sits at $21,108.
BTCUSD 180822 Hourly Chart
Looking on the EMAs and the 4-hourly candlestick chart (beneath), it was a bearish sign. This morning, bitcoin sat above the 200-day EMA, at present at $23,249.
The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish worth indicators.
A transfer by means of the 100-day EMA (23,648) would deliver the 50-day EMA ($23,894) and R1 ($24,125) into play.
However, a fall by means of the 200-day EMA would see BTC check S1 ($22,855) and assist at $22,500.
BTCUSD 180822 4 Hourly Chart
Looking on the tendencies, BTC would wish a transfer by means of the August excessive of $25,203 and $25,500 to focus on the June excessive of $31,956. A BTC transfer by means of the 100-day EMA and the 50-day EMA would assist the present upward development. From $32,000, BTC ought to have a transparent run on the May excessive of $40,004.
For the bears, the June 18 low of $17,601 could be the subsequent goal, with a fall by means of $20,000 and the July low of $18,768 prone to check investor resilience.
However, as proven beneath, BTC is on a development of upper lows, supporting a extra bullish outlook.
BTCUSD 180822 Trend Analysis