It was a particularly choppy start to the week for Bitcoin (BTC). A Monday morning sell-off saw Bitcoin tumble to a January low $32,991 before finding support. Through the second half of the day, Bitcoin bounced back to strike a day high $37,469 before easing back.

Bitcoin Bucks the Crypto Trend

There were no major news stories to support the Bitcoin rebound, with the rest of the crypto market seeing deep red. Bitcoin rose by 1.14% on Monday, to end the day at $36,703.

It was a bearish session for the broader crypto market, however. From the top 10 by market cap, Cardano (ADA) and Ethereum (ETH) fell by 5.24% and by 3.91% respectively, with Solana (SOL) tumbling by 7.88%. Negative sentiment towards FED monetary policy and increased regulatory scrutiny continued to weigh on the crypto market.

For Bitcoin, however, a NASDAQ rebound from heavy losses early in the U.S session delivered much-needed support. Dip buyers jumped in after another bout of selling to deliver the upside, with Bitcoin benefiting from a similar fate.

Crypto Downside Risks Remain

While the global financial markets grapple with the prospects of 4 rate hikes by the FED this year, the crypto market also has regulatory activity to consider.

Talk of banning Proof-of-Work crypto mining and increased regulatory scrutiny both remain negatives for the crypto market. Yesterday’s Bitcoin rebound will likely raise more eyebrows. Earlier this year, the IMF had raised concerns over the interconnectedness of the crypto and U.S equity markets. Monday’s moves was further justification of the IMF’s concerns and the Bank of England view on cryptos and financial stability.

On Monday, the NASDAQ 100 ended the day up by 0.49%. The NASDAQ 100 had been down by almost 3% before an afternoon session rebound. Bitcoin’s movement on the day largely mirrored that of the NASDAQ.

The Bitcoin Fear & Greed Index

A 2^nd consecutive day in the green was of little comfort for Bitcoin investors, however. Having fallen back to 11/100 on 23^rd January, the Bitcoin Fear & Greed Index inched up to 12/100 at the time of writing. While continuing to hold above 8^th January’s low of 10/100, the Index sits well below a current month high 24/100.

The index currently sits in the red, reflecting the market’s bearish sentiment. A move back through to 30/100 and into the orange would be needed to reflect any shift in sentiment. Back in November, the Index had risen to 84/100 on 9^th November before hitting reverse.

Bitcoin Price Action

At the time of writing, Bitcoin was down by 0.99% to $36,341. A move through Monday’s high $37,469 would bring the first major resistance level at $38,451 into play. Expect plenty of resistance at $37,500, however. Key through the day would be to avoid the day’s $35,721 pivot.