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Bitcoin Fear and Greed Index Targets Extreme Greed to Confirm BTC Breakout

Jim Smith
  • A bullish Sunday saw Bitcoin gaining 3.11% to finalize the week at the $23,746 area.
  • Investors ignored the surged crypto industry scrutiny on Friday, with a bias toward Federal financial policy offering support.
  • The Fear and Greed Index reacted to the optimistic session, climbing to 61/100 from 55/100.

Bitcoin reversed Saturday’s 0.16% dip following yesterday’s 3.11% upsurge. The leading crypto asset closed the week at $23,746 – 4.55% up. Bitcoin hit new yearly peaks of $23,962. That came after it avoided sub $23K for the initial time since 19 August.

Mixed early action had Bitcoin plummeting to $23K before upsides. It steered from the initial massive footing of $22,876, climbing toward the $23,962 late high. Bitcoin overcame the initial massive resistance zones to close the day at around $23,746. The 3rd crucial resistance at $23,639 offered later support.

Support from Soft Landing Hopes and Federal Policy Sentiment

Saturday’s White House Administration-triggered pullback saw investors shifting focus to the Federal Reserve on Sunday. 25bp Federal hike bets on Wednesday meant a less aggressive stance to control inflation, and that offered price support.

The United States witnessed eased inflationary pressures, with the economy displaying early cracks due to the stiffer credit conditions. However, despite stiff labor market conditions, rate-hold bets in March surged, supporting Bitcoin and the overall cryptocurrency market.

Meanwhile, the crypto space enjoyed more tailwinds from the hopes of Ripple defeating SEC and easing contagion risk from Genesis and FTX. Nonetheless, regulatory danger poses a challenge, with the United States administration calling for more policies to alleviate crypto risks. The market doesn’t have economic indicators from the United States to offer investor direction.

Nonetheless, the NASDAQ Composite may influence the market during the afternoon as market players await Wednesday’s rate decision. The NASDAQ mining stayed 23.25 points down early today. Also, investors should watch cryptocurrency news wires. Genesis, FTX, and SEC vs. Ripple updates need attention.

Fear and Greed Index Moves Toward Extreme Greed

Today’s sessions saw the Bitcoin Fear and Greed Index climbing to 61/100 from 55/100. A new 2023 Bitcoin high supported the indicator’s move toward the Extreme Greed region. Though heightened cryptocurrency market scrutiny tested investor sentiment and bias toward Federal financial policy eased contagion risks, the United States economic picture offered support.

Short-term, the indicator needs to dodge returns to 54/100 (Neutral zone) to support Bitcoin’s $25K return. A dip into the Fear region would confirm short-term bullish trend reversals.

BTC Price Action

Bitcoin hovered near $23,710 during this writing, following a 0.15% dip. Mixed early actions saw the crypto climbing to a $23,875 high before dipping to $23.7K lows. Bitcoin should avoid declines beneath $23,569 to target the initial massive resistance of $24,139.

Meanwhile, upticks past the $23,962 Sunday peak would authorize another breakout. Nonetheless, support from the NASDAQ and friendly crypto updates are essential to back the upside. A bullish session may see bulls testing the 2nd crucial resistance of $24,531. Next, BTC will hit the 3rd enormous resistance at $25,493.

Meanwhile, declines beneath $23,596 would open the road to the first support of $23,177. Nonetheless, excluding broad-based sell-offs, Bitcoin should avoid the $23K region and the 2nd massive support floor at $22,607. Bitcoin’s third crucial support sits at around $21,645.

Stay tuned for the latest cryptocurrency news.