🅱️ Bitcoin Fear & Greed Index Neutral, Why So Bearish?

20 янв. 2023 г.

The Crypto Fear & Greed Index just turned neutral today.

Yesterday it had a reading of fear and it was there for a very long time. Even while bitcoin's price grew by 33% since the 24th of December and by 40% since the 21 November low, still... The multifactorial crypto market sentiment analysis remained in fear.

Moving from fear to neutral is a good development and this is the highest reading since August 2022.

Let's get back to basics... What is the chart saying?

Bitcoin went on a massive bullish run and conquered all the moving averages displayed on the chart, long-term and short-term ones.

Bitcoin moved easily above EMA50 and EMA100, is trading above the short-term EMA10 and also the long-term MA200.

While a peak was hit 18-January, there has been virtually no retrace.

Normally, when it is time for a retrace it happens fast, sudden, right after a resistance level has been hit.

The fact that BTCUSD broke above MA200 14-Jan. and hasn't moved back to test this level is a signal of massive strength.

The RSI is still ultra-bullish but going back below overbought while prices remain high/strong.

Bitcoin hasn't moved to test EMA10 either, which is another logical level to test after such strong growth... Everyday that passes, the bears lose downward pressure momentum and the bulls gain the charts control.

The longer BTCs price remain trading near resistance, the weaker this resistance becomes.

The resistance range/level is now sitting between $21,200 and $21,500.

As soon as this level is conquered we can move ahead.

We have a date... Between 22-23 January the next move should be clear. Action confirmed upwards 24 January and we are leaning bullish.

You can check the true meaning of an overbought RSI on the 'Related Ideas' below.

Bitcoin stays strongly bullish.

In order for our short-term bias to switch from bullish to bearish, there would need to be a drop and close below EMA10 and MA200 on the daily timeframe.

This would open the doors for potentially lower but still the bullish bias remains 100% intact.

• Any trading above the 21-November-2022 low price of $15,477 and we remain bullish.
  
• Any trading above $20,000 is ultra-bullish.
  

Retraces and corrections are normal specially after 40% growth but here we have none.

Bullish consolidation, when consolidation happens above recent conquered resistance levels, is one of the strongest signal one can get.

Right now we only need patience and growth is likely to follow in a matter of days.

The next target will be $24/$25,000 followed by 27K.

The main support levels on a drop is still $20,000 and $19,000 are really strong.

Since bitcoin continues green, we can focus on the targets rather than support.

Namaste.