Key Insights:
On Sunday, bitcoin (BTC) rose by 1.51% to end the day at $29,452. Resistance at $29,500 capped the upside.
The bullish session came despite a lack of any crypto news stories to shift the bearish investor sentiment.
Bitcoin (BTC) technical indicators flash red, with bitcoin sitting at the 50-day EMA.
Bitcoin (BTC) rose by 1.51% on Sunday. Following a 1.46% gain on Saturday, bitcoin ended the week down by 2.68% to $29,452. The broader crypto market joined bitcoin in the green on Sunday.
A bearish start to the day saw bitcoin slide to an early low of $28,820 before making a move.
Steering clear of the First Major Support Level at $28,601, bitcoin rallied to a late-day high of $29,549 before easing back.
Breaking through the First Major Resistance Level at $29,331, bitcoin tested resistance at $29,500 before easing back.
The Bitcoin Fear & Greed Index Hits Reverse Again
This morning, the Fear & Greed Index fell from 14/100 to 10/100 to match last week’s low. The decline came despite bitcoin and the broader market enjoying a bullish weekend.
While avoiding a return to May’s low of 8/100, failure to breakout from its current ranges continues to spell trouble.
Regulatory uncertainty remains a concern for investors following the collapse of TerraUSD (UST) and Terra LUNA Classic.
Investigations into the events that preceded the collapse could unveil sinister activity that could further test the appetite for cryptos.
Investor sentiment towards Do Kwan and the Terra ecosystem failed to improve following the launch of LUNA 2.0.
On Saturday, LUNA tumbled by 80% to a low of $4.00 before finding support. The sell-off reflected a distrust following Saturday’s airdrop.
Bitcoin (BTC) Price Action
At the time of writing, BTC was down by 0.32% to $29,357.
Technical Indicators
BTC will need to avoid the $29,272 pivot to target the First Major Resistance Level at $29,725.
BTC would need the broader crypto market to support a breakout from Sunday’s high of $29,549.
An extended rally would test the Second Major Resistance Level at $30,003. The Third Major Resistance Level sits at $31,732.
A fall through the pivot would test the First Major Support Level at $28,997. Barring an extended sell-off, BTC should steer clear of sub-$28,500 levels. The Second Major Support Level at $28,545 should limit the downside.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. The 50-day EMA, currently at $29,348, pegged bitcoin back. The 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA, BTC negative.
A return to $30,000 and a move through the 100-day EMA at $30,148 would support a shift in sentiment.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/fear-greed-index-weighs-bitcoin-013503856.html