The BTC Fear & Greed Index succumbed to Fed chatter from Thursday. Today's market activity will be mostly influenced by US nonfarm payrolls.
Bitcoin's (BTC) price dropped by 0.97% on Thursday. BTC ended the day at $19,960 after suffering a loss of 0.92% on Wednesday. It's notable that BTC ended the day below $20,000 for the first time in three sessions.
BTC reached a high of $20,455 early in the day thanks to a bullish start to the day. BTC fell to a late low of $19,866 after hitting the First Major Resistance Level at $20,429. BTC found support to end the day at $19,960 despite being close to the First Major Support Level at $19,816.
On Thursday, BTC continued to the NASDAQ, with both markets being sensitive to the opinions of FOMC members.
Charles Evans of the FOMC hit first, predicting 125 basis points of rate increases by the year's end. The loss was however minimal due to various sentiments about a Fed-driven recession.
The NASDAQ 100 decreased by 0.68% on Thursday. The NASDAQ 100 Mini increased 1.75 points this morning.
Later today, US nonfarm payrolls and Fed chatter will influence the markets. The probability of a rate increase of 75 basis points is currently 75.9%, up from just 53.2% on September 29th, according to the FedWatch Tool.
The extreme fear zone has returned for the Bitcoin Fear & Greed Index
The Fear & Greed Index fell from 26 to 23 today. The Index brought back to the Extreme Fear zone in response to a second session that was negative in a row and a drop in the price of bitcoin to below $20,000.
On Wednesday, the Index had moved into the Fear zone for the first time since September 18 before succumbing to Fed chatter.
BTC and Index have been kept back due to uncertainty about the economic outlook and if the Fed can prevent a hard landing.
The Index is still delaying a return to the sub-20/100 level, which has supported the price of bitcoin. The Index will need to keep avoiding sub-20/100 for the bulls to support a change in sentiment. However, a decline to below 20/100 would signal a BTC decline to below $18,000.
