Key Findings:
- On Tuesday, Bitcoin (BTC) surged 1.91% to end the day at $29,630 with resistance at $30,000 capping the upside.
- The bullish session came amid growth fears and sent the NASDAQ 100 down 2.35%.
- Bitcoin (BTC) technical indicators are flashing red, with Bitcoin trading below the 50-day EMA.
Bitcoin (BTC) is up 1.91% on Tuesday. The move higher came despite growth fears weighing on the NASDAQ 100 and other riskier assets. Bitcoin partially reversed a 3.93% drop from Monday to end the day at $29,630.
After a range bound morning, Bitcoin slipped to an early afternoon intraday low of $28,630.
Bitcoin missed the first major support level at $28,413 and hit a daily high of $29,800 before retreating.
On Tuesday, risk aversion drove the NASDAQ 100 down 2.35%. Bitcoin has decoupled from the NASDAQ for a second straight day.
BTC and NASDAQ 2505 daily chart
Bitcoin Fear & Greed Index continues to avoid below 10/100
This morning the Fear & Greed Index slipped from 12/100 to 11/100. The drop came even as Bitcoin recovered from an early afternoon sell-off.
Fear & Greed 250522
While avoiding a return to last week’s low of 8/100, a failure to break out of the current ranges could spell trouble for Bitcoin.
Alongside growth fears, Bitcoin and the broader crypto market face the prospect of a shift in the regulatory landscape. Added to this are the consequences of the collapse of TerraUSD (UST) and Terra LUNA.
Investigations into the events that led to the decoupling of UST from the dollar could uncover fraudulent activity that would impact the market.
As lawmakers probe the collapse, central bankers have seized the opportunity to bash crypto. ECB President Lagarde and BoE Governor Bailey both spoke of crypto as worthless. For now, however, investors have been paying little heed to the anti-crypto chatter.
Bitcoin (BTC) price action
At the time of writing, BTC was down 0.17% to $29,578.
BTCUSD 250522 daily chart
Technical indicators
BTC needs to avoid the $29,354 pivot to target the first major resistance level at $30,077.
BTC would need the broader crypto market to support a breakout from Tuesday’s high of $29,800.
An extended rally would test the second major resistance level at $30,524 and resistance at $31,000. The third major resistance level is located at $31,693.
A break through the pivot point would test the first major support level at $28,907. Barring an extended sell-off, BTC should avoid the sub-$28,000 level. The second major support level at $28,183 should limit the downside.
BTCUSD 250522 hourly chart
Looking at the EMAs and the 4-hour candlestick chart (below), this is a bearish signal. BTC is below the 50-day EMA at $29,829 this morning. The 50-day pullback from the 100-day EMA. The 100-day EMA retreated from the 200-day EMA, BTC negative.
A move through the 50-day EMA to $30,000 would support a move to $31,000.
BTCUSD 250522 4 hour chart
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