Bitcoin Fear & Greed Index Steady Despite Fall to $20,000

Updated:

Over the weekend, Bitcoin (BTC) slumped to the sub-$20,000 mark as traders took flight from risky assets once again.

Investors responded to warnings made by US Fed Chair Jerome Powell at the recently concluded Jackson Hole symposium, where he said there was a likelihood of a fallout from the bank’s policy plans to curb rising inflation. Crypto investors and traders took the prospect of a significant rate hike as a sign of an end of the free money environment that has supported risky assets for some time now.

Powell snuffed all hopes of a near-term policy reversal by the Fed, hammering in need for a sustained period of below-trend growth coupled with a weaker labor market to get inflation under control.

Despite the unfortunate events over the weekend for Bitcoin, the Fear & Greed Index remained unchanged at 28 between Saturday and Sunday. The index managed to keep its head above the 28 mark despite this being the first time BTC would breach the $20,000 mark since mid-July. This sustenance above the “extreme fear” zone is crucial for a comeback for BTC bulls.

Bitcoin Fear & Greed Index

That said, analysts believe that a return to the 40 areas would power a recovery above the elusive $25,000 level. Until then, the possibility of a return to 2022 low at $17,580 remains strong.

Key Bitcoin Levels to Watch — August 28

After losing the $21,000 handle over the weekend, Bitcoin currently holds the $20,000 mark. The benchmark cryptocurrency needs to maintain this support as it is likely the only line holding it from freefall to the sub-$18,000 mark.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

The benchmark cryptocurrency is also coasting in oversold conditions, suggesting that a breach of the $20,000 pivot bottom might be unlikely in the near term.

Meanwhile, my resistance levels are at $21,000, $21,700, and $22,700, and my key support levels are at $20,000, $19,000, and $18,000.

Total Market Capitalization: $968.5 billion

Bitcoin Market Capitalization: $383.2 billion

Bitcoin Dominance: 39.5%

Market Rank: #1

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.