- Bitcoin witnessed declines yesterday, and the Fear and Greed Index suggested further downside. Moreover, technical indicators indicated an impending move.
- Wednesday sessions had BTC losing 3%, ending the day near $30,180. The bearish session had the token exploring sub-$30K for the 8th successive session.
- Market anxiety resurfaced due to inflation as surged crude oil prices deteriorate risk assets.
- The Fear and Greed index plummeted from high zones explored since 1 June, confirming further declines.
Bitcoin lost 3% on Wednesday, extending Tuesday’s 0.77% slump to end the day around the $30,180 value area. Mixed actions early on the day had the leading crypto hitting morning peaks at $31,305 before reversing.
BTC could not overcome the initial massive resistance at $32,039 and plummeted to $29,840 before securing a foothold. Meanwhile, the asset conquered first resistance at $29,698 to end the day beyond $30K. BTC visited sub-$30K for the 8th consecutive day.
Fear and Greed Index Shows Pain for Bulls
Today’s sessions had the Fear and Greed Index declining to 11/100 from 17/100. Bitcoin plummeted from its highest mark since 1 June, entering deeper inside the extreme fear territory, indicating investor worries for more substantial losses.
Though it explores the extreme fear region, the index stayed beyond the 8/100 May low. Market worry over inflation resurged on Wednesday, pushing BTC and NASDAQ lower. The crypto tracked Nasdaq 100 during the United States session. Moreover, the latest sessions saw Nasdaq 100 and Bitcoin on an inverse correlation amid strengthening crude oil prices. Meanwhile, the market’s sensitivity to oil prices will unlikely abate soon as crude oil prices remain a factor behind U.S 40-year inflation highs.
Bitcoin Price Action
While publishing this content, Bitcoin hovered at $30,330, losing 0.60% within the previous day. Early price movements on the day had Bitcoin hitting $30,224 and declining to $30,053 before another uptick. A move past the pivot of $30,441 would support upswings towards the initial resistance at $31,041. Further upside will push BTC towards the resistance at $31,908 before exploring the $32.5K hurdle.
Failure to topple the pivot would see Bitcoin testing the initial support floor at $29,579. Excluding stretched sell-offs, the bellwether crypto should avoid sub-$29K. The second support floor stands at $28,976.