Bitcoin (BTC) Rises for the Fourth Day in a Row but Ends May in the Red
Key Insights:
On Tuesday, bitcoin (BTC) rose by 0.21% to consolidate Monday’s 7.69% rally and end the day at $31,782.
A choppy end to the month saw bitcoin revisit $32,000 levels with a day high of $32,367 before easing back.
Bitcoin (BTC) technical indicators flash green, with bitcoin sitting above the 100-day EMA.
On Tuesday, bitcoin (BTC) rose by 0.21%. Following a 7.69% rally on Monday, bitcoin ended May down by 15.6% to $31,782.
A choppy session saw bitcoin fall to a day low of $31,203 before finding support. Steering clear of the day’s Major Support Levels, bitcoin rallied to a day high of $32,367 before easing back.
While falling short of the First Major Resistance Level at $32,821, bitcoin tested resistance at the 200-day EMA.
An increase in the Fear & Greed Index delivered support, while inflation fears and regulatory uncertainty remained crypto market negatives.
The Bitcoin Fear & Greed Index Hits Reverse Again
Today, the Fear & Greed Index rose from 16/100 to 17/100, its highest level since a May 8 value of 18/100.
Despite the upswing, the Index remains deep in the “Extreme Fear” zone. A move through to 25/100 and into the “Fear” zone would reflect a shift in investor sentiment.
Regulatory uncertainty remains a concern for investors following the collapse of TerraUSD (UST) and Terra LUNA.
Adding to the market angst on Tuesday were renewed inflation fears as investors responded to news of OPEC members considering the suspension of Russia from OPEC + 1.
Looking at the crypto liquidations, 24-hour liquidations fell back from $350 million levels.
At the time of writing, 24-hour liquidations stood at $229.73 million, according to Coinglass.
While the Fear & Greed Index and liquidation numbers delivered support, movement across the US equity markets tested investor sentiment.
Bitcoin tracked the NASDAQ 100 through the day before finding late support to mark a fourth consecutive daily rise.
The NASDAQ 100 ended the day with a modest 0.41% loss.
Bitcoin (BTC) Price Action
At the time of writing, BTC was 0.12% to $31,820.
Technical Indicators
BTC will need to avoid the $31,778 pivot to target the First Major Resistance Level at $32,367.
BTC would need the broader crypto market to support a return to $32,000.
An extended rally would test the Second Major Resistance Level at $32,943 and resistance at $33,500. The Third Major Resistance Level sits at $34,112.
A fall through the pivot would test the First Major Support Level at $31,194. Barring an extended sell-off, BTC should steer clear of sub-$30,500 levels. The Second Major Support Level at $30,612 should limit the downside.
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 $30,468. The 50-day narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, BTC positive.
A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $35,000.
This article was originally posted on FX Empire