Bitcoin and the overall cryptocurrency market plummeted within the past day as crypto investors failed to escape economic sentiment and Fed Reserve’s monetary policy.
- Tuesday sessions saw BTC plunging for the 5th time within seven sessions.
- The broad market recorded heavy losses as U.S equity’s risk aversion hit the cryptocurrency space.
- Bitcoin sits well beneath the 50-day Exponential Moving Average as technical indicators continue to display bearishness.
Tuesday’s trading session saw Bitcoin losing 5.74% to reverse Monday’s 2l46% surge, ending the day near $38,117. A bearish outlook had BTC visiting sub-$38K, with $37,727 as the day low. Remember, Bitcoin has never explored sub-$38K lows since 14 March 2022.
Bearishness in the crypto market emerged as U.S equity markets saw negative sentiment. The spillover comes as Bitcoin shows an increased correlation with NASDAQ. Meanwhile, the overall crypto space saw downswings. LUNA declined by 8.76%, while XRP and ADA lost 7.49% and 7.92%, respectively.
Other loses came from Avalanche (-5.77%), Solana (-5.22%), Ethereum (-6.59%) and Binance Coin (-4.53%). The market downbeat had Dogecoin dropping out of the top ten crypto list, following a more than 12% 24-hour drop.
BTC Fear and Greed Index Reverses
Morning sessions today have the Fear and Greed Index standing a 21/100. The index remained ‘extreme fear’ despite BTC’s brief climb to $42.9K last week. Furthermore, it stayed in the fear and ‘extreme fear’ zone since 7 April.
Meanwhile, the index should climb past 46/100 to support bullish actions toward the $47,433 April peaks.
BTC Correlation with NASQDA 100 Strengthens
The U.S equity markets saw bearishness on Tuesday. NASDAQ 100 lost 3.95%, as S & P 500 and Dow noted losses of 2.81% and 1.38%, respectively. Bitcoin has had its NASDAQ correlation strengthening as crypto investors look to escape traditional market and Fed policy forces.
BTC Technical Indicators
BTC traded near $39,055 at this publication. Keeping the $38,880 day’s pivot away can support a move toward the $40,038 resistance. Improved market conditions are essential to overpower the $39.5K hurdle.
Extended upsides would take BTC to the second massive resistance at $41,950 before challenging the obstacle at around $42K. The 3rd crucial resistance stood at $45,023. However, weakness at the pivot would see Bitcoin at the $36,968 support. The second foothold stood at $35,818.
The EMAs and 4hr candle chart present bearish gestures. BTC hovers beneath the 50-dayEMA of $39,943. The 50-dayEMA drifted from the 100-dayEMA early today, ensuring downward pressure. However, a move beyond the 50-day Exponential Moving Average would back an upsurge to $42K.