Bitcoin (BTC) Visits Sub-$35,000 Before Market Rebound
Key Insights:
Markets react favorably to harsh sanctions on Russia
Bitcoin (BTC) follows the NASDAQ into positive territory
Technical indicators still bearish despite Thursday’s gain
Volatility spiked for a 3rd consecutive day on Thursday. Market reaction to Russia invading Ukraine led Bitcoin (BTC) to a day low of $34,350. News of a string of sanctions on Russia delivered much-needed support, however.
Bitcoin struck a day high of $39,182 before easing back. Reversing a 2.61% loss from Wednesday, Bitcoin rose by 1.92% to end the day at $37,986.
It was a mixed session for the crypto top 10, however.
LUNA rallied by 10.38% to lead the way, with AVAX (+4.38%) and SOL (+5.61%) also finding strong support.
While ETH (+0.64%) also found support, BNB (-1.18%), ADA (-1.39%), and XRP (-0.14%) ended the day in the red.
Bitcoin Fear & Greed Index Continues Upswing
On Thursday, the Bitcoin Fear & Greed index had fallen back to 23/100 before Bitcoin’s late Thursday bounce back. This morning, the index rose to 27/100 and out of the “Extreme Fear” zone.
For the Bitcoin bulls, the index will need to move back through to 50/100 to bring $50,000 levels back into play for Bitcoin. A fall through to sub-20/100 would deliver sub-$30,000 levels.
NASDAQ 100 Mini and Bitcoin (BTC) Correlation Remains
On Thursday, Bitcoin tracked the NASDAQ 100 mini into the deep red and then into positive territory late in the session. News of Russia invading Ukraine sent the NASDAQ 100 mini into the deep red before the markets responded favorably to reports of fresh sanctions on Russia.
Market reaction to sanction news fueled a 3.35% rally for the NASDAQ 100, which had fallen by 2.57% on Thursday.
At the time of writing, the NASDAQ 100 Mini was down by 101 points.
Bitcoin Price Action
At the time of writing, Bitcoin was up by 0.92% to $38,335.
Technical Indicators
Bitcoin will need to avoid the $37,173 pivot to make a run on the First Major Resistance Level at $39,995. The NASDAQ 100 Mini would need to support a breakout from Thursday’s high $39,182.
In the event of an extended rally, the Second Major Resistance Level at $42,005 would come into play. The Third Major Resistance Level sits at $46,837.
A fall through the pivot would bring the First Major Support Level at $35,163 into play. In the event of an extended sell-off, Bitcoin could test support at $33,000. The Second Major Support Level sits at $32,341.
Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. Bitcoin continues to sit below 50-day EMA. A further pullback of the 50-day EMA from the 100-day and 200-day EMAs would place Bitcoin under more pressure.
A Bitcoin move through the 50-day EMA at the $38,800 level would provide some support.
This article was originally posted on FX Empire