Bitcoin reversed its 1.57% gain from the previous day with a 3.51% decline during Sunday’s trading, bringing its weekly loss to 11.1% and a closing price of $19,418. Bitcoin’s price plunged from its early highs at $20,125 to its late lows at $19,350 yesterday, as bearish sentiment prevailed throughout the day. The day ended with the leading cryptocurrency trading below $19.5K, having broken through the first reliable support at $19,852 and the foothold at $19,577.
The Sunday downturn may have had multiple causes. However, the FOMC forecast and the mood of investors before the Fed’s financial decision both mattered. The fear of a recession only compounded things. Riskier assets would take a hit if the Fed took a more hawkish posture and lowered its growth forecast.
The Bitcoin (BTC) Fear Index Has Dropped to Anxiety-Inducing Levels
The Fear and Greed Index fell today, from 27 to 21 out of 100. Since the cryptocurrency market is in the dumps and Bitcoin is back down below $20,000, the index has followed suit. This caused it to fall into the “severe dread” zone, indicating widespread apprehension in the market about the economy and the Fed’s recent policies.
Crypto bears would be looking for a dip to sub-20/100 to confirm Bitcoin’s slide to sub-$18K, so avoiding that level remained crucial. To the contrary, bulls will need to see 40/100 again to support a rise to $25K.
Transactions in Bitcoin Price
Bitcoin’s price was still below the $20,000 barrier at the time this blog was published, and it appeared to be prepared for additional drops. If the cryptocurrency wants to reach the initial major resistance at $19,912 and the $20,125 Sunday peak, it must first break through the pivot at $19,631.
In the meanwhile, traders’ attention will be on the impending financial decision, with the NASDAQ 100 likely to influence price changes. The current environment is extremely bearish, however. For instance, the exponential moving averages (EMAs) and the 4-hour candle chart both showed declining trends. The market is likely to continue plunging in the hours ahead.
Generally speaking, what do you think the future holds for the cryptocurrency market? The comment section is down below.