- While it was another choppy session, bitcoin (BTC) rose by 1.91% to end the day at $20,545.
- While recession fears continued to hit crude oil prices, the NASDAQ 100 delivered bitcoin support through the US session.
- However, technical indicators remained bearish, with bitcoin below the 100-day EMA.
On Wednesday, bitcoin (BTC) rose by 1.91%. Reversing a 0.27% decline from Tuesday, bitcoin ended the day at $20,545.
A bearish morning saw BTC fall to a low of $19,750.
Steering clear of the First Major Support Level at $19,390, BTC rallied to a high of $20,638.
However, falling short of the First Major Resistance Level at $20,827, bitcoin eased back to end the day at sub-$20,600.
Economic indicators from the US delivered NASDAQ 100 support. The all-important ISM Non-Manufacturing PMI slipped from 55.9 to 55.3, beating forecasts of a decline to 54.3.
JOLTs job openings also painted a healthy picture, with job openings at 11.254 million in May. In April, openings had stood at $11.681 million.
While the NASDAQ found support, more widespread fears of a recession in the Eurozone and beyond weighed on crude oil prices, leaving the inverse correlation between bitcoin and WTI in place.
Today, US ADP Nonfarm Employment Change and weekly jobless claim figures will also draw interest.
At the time of writing, the NASDAQ 100 Mini was up by 1 point.
Bitcoin Fear & Greed Index
This morning, the Fear & Greed Index held steady at 18/100. While bitcoin found support on Wednesday, crypto market headwinds linger, leaving downside risks in play.
The failure of the Index to move towards the “Fear” zone reflected the prevailing market headwinds.
However, for the bitcoin bulls, avoiding a return to sub-14/100 remained bitcoin positive.
A resumption of the latest upward trend towards the 25/100 and the “Fear” zone would also deliver further BTC support.
The Index last sat in the “Fear” zone on May 5, when bitcoin stood at $36,630.
Bitcoin (BTC) Price Action
At the time of writing, BTC was down 0.07% to $20,530.
A mixed start to the day saw BTC rise to an early high of $20,575 before falling to a low of $20,472.
BTC left the Major Support and Resistance Levels untested early on.
BTC will need to avoid the $20,314 pivot to test the First Major Resistance Level (R1) at $20,875 and resistance at $21,000.
BTC would need NASDAQ 100 Mini support to breakout from the Wednesday high of $20,578.
An extended rally would test the Second Major Resistance Level (R2) at $21,196 and resistance at $21,500. The Third Major Resistance Level (R3) sits at $22,087.
A fall through the pivot would bring the First Major Support Level (S1) at $19,982 into play.
Barring an extended sell-off, BTC should avoid sub-$19,500 and the Second Major Support Level (S2) at $19,423.
The Third Major Support Level (S3) sits at $18,535.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 100-day EMA, currently at $20,669.
The 50-day EMA narrowed to the 100-day EMA. The 100-day EMA flattened on the 100-day EMA; bitcoin price positive.
A breakout from the 100-day EMA and R1 would bring R2 and $21,500 into play.
However, a retreat through the 50-day EMA would test S2 and support at $19,000.