Key Insights:
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On Monday, bitcoin (BTC) rallied by 7.69% to end the day at $31,716. It was a third consecutive bullish session.
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Despite the breakout session, bitcoin remained deep in the red for May, weighed by a record nine consecutive weekly losses.
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Bitcoin (BTC) technical indicators flash green, with bitcoin sitting above the 100-day EMA.
On Monday, bitcoin (BTC) rallied by 7.60%. Following a 1.51% gain on Sunday, bitcoin ended the day at $31,716. The breakout session saw bitcoin strike a day high of $32,162 before easing back.
Bitcoin broke through the day’s Major Resistance Levels to end the day at $31,000 levels for the first time since May 15. It was bitcoin’s first visit to $32,000 levels since May 11, the week of the TerraUSD (UST) collapse.
The Bitcoin Fear & Greed Index Hits Reverse Again
Today, the Fear & Greed Index rose from 10/100 to 16/100, its highest level since a May 8 value of 18/100.
Despite the upswing, the Index remains deep in the “Extreme Fear” zone, reflecting investor fear of another bitcoin and broader crypto market sell-off.
Regulatory uncertainty remains a concern for investors following the collapse of TerraUSD (UST) and Terra LUNA.
Looking at the crypto liquidations, 24-hour liquidations have fallen back after hitting $350 million overnight.
At the time of writing, 24-hour liquidations stood at $298 million, according to Coinglass.
Adding further price support this morning is a further rise in the NASDAQ 100 mini ahead of today’s US market open.
At the time of writing, the NASDAQ 100 Mini was up 74.5 points. Early in the US session, consumer confidence figures for May will draw investor interest.
Bitcoin (BTC) Price Action
At the time of writing, BTC was up by 0.09% to $31,745.
A range-bound start to the day saw bitcoin strike a morning high of $31,836 before falling to a low of $31,437.
Technical Indicators
BTC will need to avoid the $31,056 pivot to target the First Major Resistance Level at $32,821.
BTC would need the broader crypto market to support a breakout from Monday’s high of $32,162.
An extended rally would test the Second Major Resistance Level at $33,926 and resistance at $35,000. The Third Major Resistance Level sits at $36,803.
A fall through the pivot would test the First Major Support Level at $29,947. Barring an extended sell-off, BTC should steer clear of sub-$29,500 levels. The Second Major Support Level sits at $28,182.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. Bitcoin sits above the 100-day EMA, currently at $30,311. The 50-day narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, BTC positive.