Bitcoin (BTC) and the Broader Market Slide as Risk Aversion Bites
Categories: Bitcoin US
On Sunday, Bitcoin (BTC) rose by 0.05%. Following a 0.68% decline from Saturday, Bitcoin ended the week down 0.56% to $39,466.Last week, Bitcoin came under renewed selling pressure with market sentiment towards inflation and Fed monetary policy testing support for riskier assets. Bitcoin Fear & Greed Index Hits Reverse This morning, the Fear & Greed Index stood at 23/100. Despite Bitcoin’s brief return to $42,900 last week, the Index has remained within the “Extreme Fear” and “Fear” zones since April 07.The “Fear” and “Extreme Fear” zones reflect investor expectations of further price deterioration.For the Bitcoin bulls, the Index will need to move back through to 46/100 to bring April’s high of $47,433 into play.Across the global financial markets, the NASDAQ 100 mini was down 102.25 points this morning, with the Dow mini sliding by 267 points. Last week, the NASDAQ 100 slid by 3.83%, with a 2.55% tumble on Friday doing the damage.Earnings and Fed policy sank the US majors in the week, which spilled over to the crypto market. From the top 10 cryptos, LUNA bucked the market trend, rising by 16.8%.This week, sentiment toward Fed monetary policy will continue to leave the crypto market under pressure.News updates on China’s latest COVID-19 lockdown measures and the war in Ukraine are the key drivers as the global financial markets fret over supply chain disruption. Bitcoin Price Action At the time of writing, Bitcoin was down by 0.93% to $39,101. A bearish start to the week saw Bitcoin slide to an early morning low of $38,753.Bitcoin fell through the First Major Support Level at $39,026 before finding support. Technical Indicators Bitcoin will need to move through the day’s $39,482 pivot to target the First Major Resistance Level at $39,922. Bitcoin would need broader market support to break out from $39,500.In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $40,384. The Third Major Resistance Level sits at $41,282.