Bitcoin (BTC) Finds Support as the Threat of War Subsides
Bitcoin (BTC) was on the rise for a 2nd consecutive day on Tuesday. Supported by news of Russia withdrawing troops from the Ukraine border, Bitcoin rallied by 4.7% to end the day at $44,565.
It was also another bullish session for Avalanche (AVAX), which surged by 13.4% to lead the way. Solana (SOL) and Ethereum (ETH) also found strong support, rallying by 9.5% and by 8.7% respectively. Terra (LUNA) and Ripple (XRP) ended the day with more modest gains of 6.9% and 6.2% respectively.
NASDAQ 100 Delivers Bitcoin Support Amidst Risk Aversion
After having ended Monday flat, the NASDAQ 100 jumped by 2.53% in the response to news from Eastern Europe. Once more, Bitcoin took its cues from the NASDAQ 100, which had also delivered Bitcoin support on Monday.
For the day ahead, news updates from Russia and the U.S will need continued monitoring. Late on Tuesday, the White House and NATO had remained cautious, in spite of the news of troop withdrawals. On the economic calendar, U.S retail sales figures for January will draw plenty of interest later today. The FOMC meeting minutes due out late in the day, however, will be key.
Bitcoin Fear & Greed Index Continues Upswing
On Monday, the Bitcoin Fear & Greed Index had risen from 44/100 to 46/100 and continued to hold at 46/100 ahead of Tuesday’s Bitcoin breakout. In response, the Index climbed to 51/100 and back into neutral territory this morning.
Near-term, the Index trend will be key. The Index will need to move back through last week’s 54/100 high to bring $50,000 levels back into play for Bitcoin.
Bitcoin Price Action
At the time of writing, Bitcoin was down by 0.35% to $44,420. Avoiding a fall through the day’s $43,930 pivot would support a run at the first major resistance level at $45,407. Bitcoin would need plenty of support to break back through to $45,000 levels, however. In the event of an extended rally, Bitcoin could test the resistance at $47,000 before any pullback. The second major resistance level sits at $46,250.
A fall through the pivot would bring the first major support level at $43,087 into play. In the event of an extended sell-off, the second major support level at $41,610 would likely come into play.
Looking at the EMAs and 4-hourly candlesticks (below), the signal has become more bullish. Bitcoin broke out from the 50-day EMA on Tuesday, which has pulled further away from the 200-day EMA overnight. We also saw a bullish cross, with the 100-day EMA crossing through the 200-day EMA. A confirmation of the bullish cross would support another bullish day ahead. Key near-term, however, would be for Bitcoin to avoid falling back through the 50-day EMA, currently at sub-$43,000 levels.
At the time of writing, the NASDAQ 100 mini was down by 48.25 points, pegging Bitcoin back from an early move.
This article was originally posted on FX Empire