NASDAQ 100 Pegs Bitcoin (BTC) Back after a Bullish Sunday
It was a bullish day for Bitcoin (BTC) and the broader crypto market on Sunday. A lack of regulatory chatter and direction from the NASDAQ 100 supported Bitcoin’s ongoing recovery from a January low $32,991.
On Sunday, Bitcoin rose by 2.40% to end the day at $42,412. Supported by bullish technical indicators, Bitcoin struck a day high $42,672 before easing back. A bullish cross of the 50-day EMA through the 100-day EMA supported the run at $43,000 levels on the day. Bitcoin had last visited $42,000 and $43,000 levels back on 20th January.
Looking at the major resistance levels on the day, Bitcoin broke through the first major resistance level at $41,927. The breakout also saw Bitcoin break through the second major resistance level at $42,436, which delivered support late in the day.
Elsewhere, Dogecoin (DOGE) rallied by 4.87% to outperform the broader market. The upside was not enough, however, to move Dogecoin back into the top 10 on CoinMarketCap.
Bitcoin Fear & Greed Index Continues Upswing
Sunday’s bullish session supported further upside for the Bitcoin Fear & Greed Index that continues its upward trend from a current year low 10/100.
Having moved out of the red zone on Friday, for the first time since late December, the Index rose to 45/100 this morning. This is the highest level since 28th December, when the Index had also stood at 45/100 and Bitcoin at $48,000 levels.
We continue to see an uptrend towards 50/100 supportive of a Bitcoin move back through to $50,000 levels.
Bitcoin Price Action
Through the early hours of this morning, Bitcoin has struggled after an early rise to a morning high $42,505. Facing resistance at $42,500 and coming up short of the first major resistance level at $43,000, Bitcoin fell back to an early morning low $41,690 before returning to $42,000 levels.
At the time of writing, Bitcoin was down by 0.50% to $42,201. A bearish signal from the U.S Futures has pegged Bitcoin back this morning. The NASDAQ 100 mini was down 48.5 points at the time of writing.
For the day ahead, avoiding a fall back through the day’s $42,079 pivot would support another run at the first major resistance level at $43,000. Bitcoin would need plenty of support, however, to breakout from Sunday’s high $46,672.
Barring an extended rally on the day, the first major resistance level would likely cap the upside. In the event of a breakout, Bitcoin could test resistance at $45,000. The second major resistance level sits at $43,600.
A fall back through the pivot, however, would bring the first major support level at $41,485 into play. Barring an extended sell-off, however, Bitcoin should avoid sub-$41,000 and the second major support level at $40,559.
Looking at the EMAs and 4-hourly candlesticks, the signal continues to become more bullish. The 50-day EMA has pulled away from 100-day EMA after yesterday’s bullish cross. The 50-day and 100-day EMAs have also narrowed on the 200-day EMA. The next target for the bulls will be a bullish cross of the 50-day through the 200-day EMA that would bring $50,000 levels into view.
Through this morning, Bitcoin continued to hold above the 200-day EMA, currently at $40,700 levels. Holding above the 200-day EMA will remain key to avoiding an extended sell-off.
This article was originally posted on FX Empire
