After Friday’s 11.41% rise, Bitcoin (BTC) held onto $41,000 levels on Saturday. Finding support at $41,000, which dips to a daytime low of $40,963, was key on the day.
Last week’s tech stock defeat and week-end rebound contributed to the change in Bitcoin’s fortune. However, a number of negative factors remain for Bitcoin and the broader crypto market. These include a likely shift in the global crypto regulatory landscape, increased oversight of Proof-of-Work mining, monetary policy from the FED and geopolitical risks.
On Saturday, Bitcoin fell 0.41% to close out the day at $41,418. An early high of $41,954 saw Bitcoin resistance test at $42,000 before returning to a relatively range-bound session.
Bitcoin Fear & Greed Index Continues to Rise
Despite Bitcoin’s modest slump on Saturday, Bitcoin Fear and Greed Index continued its upward trend.
After exiting the red zone on Friday for the first time since late December, the Index rose to 37/100 this morning. This is the highest level since 28e December, when the Index was at 41/100.
A sustained uptrend towards 50/100 would support a Bitcoin decline towards USD 50,000 levels.
Bitcoin Price Action
With news wires on the quieter side this weekend, technical indicators remain vital for the day ahead.
At the time of writing, Bitcoin was up 0.35% to $41,564. Avoiding a pullback from the day’s $41,445 pivot would support a run off Saturday’s highs of $41,954 and $42,000. The first major resistance level is at $41,927. A breach to $42,000 levels would then bring into play the second major resistance level at $42,436 and $43,000. Bitcoin Last Sat At $43,000 Levels Back At 20e January.
A pivot of the day pullback would bring the first major support level of $40,936 into play. Barring a prolonged sell-off, Bitcoin should avoid under $40,000. The second major support level of $40,454 should limit the downside.
Looking at the EMAs and 4 hour candlesticks, the signal is turning more bullish. The 50-day EMA joined the 100-day EMA this morning, with a possible bullish cross in play. The 50 and 100 day EMAs have also been scaled down for the 200 day EMA. A bullish cross would support a break to $42,000 levels on the day.
At the time of writing, Bitcoin remained above the 200-day EMA, currently at USD 40,700 levels. Keeping above the 200-day EMA will be key to avoiding a prolonged sell-off.
This one article was originally posted on FX Empire