Key Findings:
- On Monday, bitcoin (BTC) added 3.93% to last week’s 3.30% loss to end the day at $29,076.
- The bearish session came as the NASDAQ 100 surged 1.59%, amid market fears of a likely shift in the regulatory landscape.
- Bitcoin (BTC) technical indicators are flashing red, with Bitcoin trading below the 50-day EMA.
Bitcoin (BTC) slipped 3.93% on Monday. Bitcoin reversed a 2.90% gain from Sunday to end the day at $29,076. As Bitcoin gave up early gains, the NASDAQ rebounded from the red to end the day in positive territory.
Dip buyers failed to provide support as Bitcoin gave up gains from earlier in the day to go below $29,000 before a partial recovery.
In Monday’s session, Bitcoin decoupled from the NASDAQ 100 through the afternoon. Bitcoin had tracked the NASDAQ throughout the morning before turning backwards.
While NASDAQ was supported by news that the US government is reviewing Chinese tariffs and China is easing lockdown measures, regulatory risk continued to weigh.
The collapse of TerraUSD (UST) and Terra LUNA has forced governments and regulators to accelerate regulatory reform, which has increased market uncertainty.
Bitcoin Fear & Greed Index avoids a return below 10/100
This morning the Fear & Greed Index went from 10/100 to 12/100. The surge came despite bitcoin edging back below $29,000 before closing at $29,076 on Monday.
Fear & Greed 240522
Avoiding a return to last week’s low of 8/100 suggests a possible bottoming from an investor fear perspective.
For bitcoin bulls, however, the detachment from the NASDAQ 100 will raise questions about what lies ahead. Increased regulatory scrutiny, negative gossip from central banks, and economic uncertainty put Bitcoin at risk of further losses.
BTC – NASDAQ 2405 daily chart.
Bitcoin (BTC) price action
At the time of writing, BTC is up 0.39% to $29,188.
BTCUSD 240522 daily chart
Technical indicators
BTC needs to move through the $29,524 pivot to target the first major resistance level at $30,188.
BTC would need the broader crypto market to support a return to $30,000.
An extended rally would test the second major resistance level at $31,300 and resistance at $31,500. The third major resistance level is located at $33,072.
If the pivot is not breached, the first major support level would be tested at $28,415. Barring an extended sell-off, BTC should avoid the sub-$27,500 level. The second major support level at $27,751 should limit the downside.
BTCUSD 240522 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 $29,921 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 $31,500.
BTCUSD 240522 4 hour chart
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