- Bitcoin lost around 0.47% on Wednesday to close at $16,845.
- Profit-taking following Tuesday’s bullish session left Bitcoin in the red, with investor focus switching to SBF’s U.S. extradition.
- The Fear and Greed Index climbed to 28/100 from 26/100 despite BTC’s failure to reclaim $17K.
Wednesday’s session saw Bitcoin losing 0.47% to reverse Tuesday’s 2.90% partially. The world’s largest digital coin wrapped the day at around $16,845. Even with this, the crypto could not reclaim $17K four times within five sessions.
Mixed early Wednesday saw Bitcoin hitting the $16,934 morning high. Meanwhile, failure to crack the initial massive hurdle at $17,189 witnessed declines, with BTC exploring a $16,750 afternoon low. The asset steered the first reliable foothold at $16,536, securing late footing to reduce the session’s deficit.
SBF & FTX Dominate Headlines, Testing Sentiment
Investors remained more cautious yesterday following Tuesday’s bullish session. Updates of Sam Bankman-Fried’s extradition to the United States raise worries, with American policymakers likely to explore digital assets to further depths. Also, lawmakers might analyze the relationship between Binance and FTX.
News about the United States planning to charge exchange Binance with fiscal crimes dented investor sentiment last week. Also, the SBC (Senate Banking Committee) conducted a meeting last week, discussing FTX’s demise. Policymakers raised worries over Binance’s dominance in the crypto space.
Sam Bankman-Fried’s revelations might place Binance in the limelight again, attracting increased policymaker scrutiny. Meanwhile, Bitcoin’s decoupling from NASDAQ confirmed the focus shift from the United States economic indicators & corporate earnings.
Wednesday saw the NASDAQ Index gaining 1.54%, following upbeat corporate earnings and better-than-anticipated consumer confidence data. Moreover, FedEx (FDX) and Nike (NKE) quarterly earnings ensured support.
Today, markets will focus on FTX news. Also, the United States’ economic signals will likely attract interest. Excluding 3rd quarter GDP revision, the weekly jobless numbers might move the button. NASDAQ mini offered early support through 32.75 points increase this morning.
Fear and Greed Index Soars to 28/100, Signaling Optimistic Thursday
Bitcoin stayed in the back seat as the focus switched to SBF extradition. Nonetheless, corporate earnings & U.S. economic signals offered hopes of a potential soft landing, assisting investor sentiment. Sam Bankman-Fried’s testimony will remain a focal point in the short term.
However, U.S. economic indicators and regulatory chatter will keep offering direction. Dodging sub-20/100 is crucial in the near term. Bulls should target pre-FTX fall 40/100 (6 November peak) to back Bitcoin’s $20K return.
BTC Price Action
BTC traded near $16,853 during this writing, 0.04% up. That comes after early range-bound moves pushed the asset to a $16,832 low before surging to $16,868. Bitcoin should avoid $16,843 to clear the fog toward the first massive obstacle at $16,936.
Reclaiming $16.9K would confirm an optimistic session for BTC. Nonetheless, crypto-friendly news wires and NASDAQ Index are essential. Continued bullish moves can see Bitcoin testing $17,027 (the second crucial obstacle) before potential pullbacks resurface.
After that, the crypto will meet another hurdle at $17,211 (third enormous resistance). Meanwhile, losing $16,843 would welcome the $16,752 initial dependable foothold. Unless with risk-off-driven slumps, Bitcoin should escape sub-$16.5K.
The 2nd support at $16,659 should prevent more dips. The 3rd reliable support barrier stands at $16,475. Nonetheless, adverse events in the cryptocurrency market would see the bellwether crypto exploring sub-$16K. The Exponential Moving Average & the 4-hourly candle chart flashed bearishness, with Bitcoin staying beneath the 50-d EMA ($16,933).