Bitcoin Fear and Greed Index Plunges Back into Extreme Fear Region
- Sunday saw Bitcoin losing 3.51% to close the week at the $20K vicinity.
- Fed fear emerged again, and an absence of market distraction left market players focused on Wednesday’s Federal rate increase & FOMC projections.
- The BTC Fear and Greed Index dropped to 21/100 from 27/100 as Bitcoin lost the $20K mark.
Sunday sessions had Bitcoin reversing a 1.57% gain of the previous day, with a 3.51% slide to close the week 11.1% down to $19,418. Bearishness throughout yesterday had Bitcoin crashing from early highs at $20,125 to $19,350 late lows. The leading crypto lost the initial dependable support at $19,852 and the foothold at $19,577 to close the day at around sub-$19.5K.
Multiple factors could have triggered the Sunday slump. Nevertheless, investor sentiment ahead of the Fed financial decision plus the FOMC projection weighed. Moreover, recession worries added to the woes. A hawkish stance by Fed plus downside growth projections would dent riskier assets.
BTC Fear and Greed Index Dips into Extreme Fear Level
Today’s sessions saw the Fear and Greed Index dropping to 21/100 from 27/100. The index reacted to the downbeat cryptocurrency market and BTC’s return to price levels below $20K. That had it dipping into the extreme fear region, confirming market play worried over the economic outlook and the Fed actions.
Escaping sub-20/100 remained vital, though crypto bear would target a dip to sub-20/100 to confirm Bitcoin’s drop to sub-$18K. Contrarily, bulls will watch for returns to 40/100 to back an upside move to $25K.
BTC Price Action
While publishing this blog, Bitcoin remained below the $20K mark and seemed ready for further plummets. The crypto requires a move past the pivot at $19,631 to target the initial massive resistance at $19,912 and the $20,125 Sunday peak.
Meanwhile, market players will focus on the coming financial decision, with NASDAQ 100 likely influencing price moves. Nevertheless, everything signals bearishness at the moment. For instance, the 4hr candle chart and the EMAs highlighted downside tendencies. Investors can expect more plunges in the coming hours.
What are your views about the prevailing crypto market outlook? You can comment below.
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