BTC Fear & Greed Index Avoids Sub-30 Despite Bearish BTC Session

Bitcoin (BTC) decreased by 1.54% on Monday. Sunday saw a loss of 1.79%, as BTC concluded the day at $20,609. Notably, BTC fell below $21,000 for the second straight session as the day came to a finish.

After a volatile morning, BTC reached a high of $21,083 early on. BTC declined to a late low of $20,421 after falling short of the First Major Resistance Level (R1) at $21,240. Prior to a partial recovery to $20,609, BTC breached the First Major Support Level (S1) at $20,762 and the Second Major Support Level (S2) at $20,592.

The US economic calendar was calm, which put BTC at a disadvantage. The US economy and a December Fed pivot will be impacted by this week's data on inflation, retail sales, and consumer mood.

But on Monday, the NASDAQ Composite Index increased by 0.85% thanks to optimism around the US midterm elections. The US economic calendar will be quiet again later today, leaving markets in a lurch while attention is still on the Mid-Term elections. The NASDAQ mini gained 15.5 points this morning.

On yet another bearish BTC session, the Fear & Greed Index drops to 31/100.

The Fear & Greed Index dropped from 33/100 to 31/100 this morning. The Index fell as a result of yet another bearish BTC session, but the decline was not severe because BTC kept above $20,000.

Lack of US economic indicators made the Fed's December monetary policy plans unpredictable. The FedWatch Tool demonstrates uncertainty regarding the December move even if market bets on a Fed pivot have increased.

The likelihood of a 75 basis point rate increase in December was 43.2% this morning, up from 38.5% on Friday.

In order to sustain a rebound to 40 and a transition into the neutral zone, the Index would need to avoid sub-30/100. However, a decline to below 20/100 would indicate a BTC decline to below $18,000.

Bitcoin Price Action (BTC)

BTC was worth $20,573 at the time of writing, down 0.17%. BTC rose to an early high of $20,641 before dropping to a low of $20,573 during the day's range-bound opening.

Technical Significance

To reach the First Major Resistance Level (R1) at $20,988 and the Monday high of $21,083, BTC must cross the pivot point at $20,704. A return to $20,750 would suggest that a breakout session might occur.

The Second Major Resistance Level (R2) at $21,366 and resistance at $21,500 would probably be in play in the event of a prolonged rise. At $22,028 is the Third Major Resistance Level (R3).

The First Major Support Level (S1), which is worth $20,326 if you succeed in moving through the pivot, would be in play. In the absence of another significant sell-off, BTC should stay over $20,000. The downside should be contained by the Second Major Support Level (S2) at $20,042.

At $19,380, the Third Major Support Level (S3) is located.