Yahoo Movies The NASDAQ 100 Avoids Red Delivering Bitcoin (BTC) Support
Bitcoin (BTC) saw a 4-day losing streak come to an end on Monday. On a mixed day for the broader crypto market, Bitcoin rose by 1.15% to end the day at $42,552.
It was also a bullish session for Avalanche (AVAX) and Solana (SOL) that led the way, rallying by 5.23% and by 3.85% respectively. Terra (LUNA) and Ethereum (ETH) ended the day up by 2.55% and by 2.02% respectively. Ripple (XRP) ended the day with a modest 0.49% loss.
NASDAQ 100 Delivers Bitcoin Support Amidst Risk Aversion
Last Friday, the NASDAQ 100 had tumbled by 2.78% to leave Bitcoin in the red going into the weekend. Interconnectedness between the NASDAQ 100 and Bitcoin continued at the start of the week. While the Dow and the S&P500 closed out the day in the red, the NASDAQ 100 ended the day flat, providing much-needed support.
For Bitcoin and the broader crypto market, avoiding heavy losses amidst the threat of a Russian invasion of the Ukraine was key.
Bitcoin Fear & Greed Index Continues Upswing
On Monday, the Bitcoin Fear & Greed Index had risen from 44/100 to 46/100 in spite of Bitcoin falling for a 4th consecutive day on Sunday. This morning, the Index held steady at 46/100 despite Bitcoin’s Monday gain.
Near-term, the Index trend will be key. The Index will need to move back through last week’s 54/100 high to bring $50,000 levels back into play for Bitcoin.
For the day ahead, news updates from Russia and the U.S will need continued monitoring.
Bitcoin Price Action
At the time of writing, Bitcoin was up by 0.08% to $42,586. Avoiding a fall through the day’s $42,330 pivot would support a run at the first major resistance level at $43,079. Bitcoin would need plenty of support to break back through to $43,000 levels, however. In the event of an extended rally, Bitcoin could test the third major resistance level at $44,882 before any pullback. The second major resistance level sits at $43,606.
A fall through the pivot would bring the first major support level at $41,803 into play. In the event of an extended sell-off, sub-$40,000 levels would likely come into play. The second major support level sits at $41,054.
Looking at the EMAs and 4-hourly candlesticks (below), the signal has become more bullish. Bitcoin has broken out from the 50-day EMA, which has pulled away from the 200-day EMA. The 100-day EMA has also narrowed on the 200-day EMA. A bullish cross of the 100-day EMA through the 200-day EMA would support a breakout day. Key, however, would be for Bitcoin to avoid falling back through the 50-day EMA, currently at $42,400.
This article was originally posted on FX Empire
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