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The NASDAQ 100 Pulls Bitcoin (BTC) Back to sub-$40,000

It was a 3rd consecutive day in the red for Bitcoin (BTC) on Friday. Geopolitics continued to weigh on riskier assets, with the markets in the hands of news updates on Russia and the Ukraine.

Following a 7.6% slide on Thursday, Bitcoin fell by 1.36% to end the day at $39,995. Amidst a broad-based crypto sell-off, Bitcoin ended the day at sub-$40,000 for the first time since 3rd February. Resistance at $40,000 pegged Bitcoin back late in the day.

It was a mixed session for the rest of the crypto top 10, however.

Avalanche (AVAX) slid by 5.27% to lead the way down, with Solana (SOL) and Cardano (ADA) falling by 3.92% and by 2.45% respectively. Ethereum (ETH) ended the day down by 3.92%.

Terra (LUNA) avoided the red, rising by 0.42%, however, with Ripple (XRP) ending the day up by 2.29%.

NASDAQ 100 Tests Bitcoin Support

Following Thursday’s 2.88% slide, the NASDAQ 100 fell by 1.23% on Friday. Market reaction to news of an imminent Russian invasion of the Ukraine continued to weigh on riskier assets.

With the U.S markets closed for the weekend, news updates on Russia and the Ukraine will remain key for the day ahead.

Bitcoin Fear & Greed Index Continues Upswing

Following Friday’s slide back to 30/100 and deep into the Fear zone, the Bitcoin Fear & Greed Index fell to 25/100 and into the “Extreme Fear” zone this morning. Geopolitics and increased regulatory chatter remain key drivers near-term.

For the Bitcoin bulls, the Index will need to move back through last week’s 54/100 high to bring $50,000 levels back into play for Bitcoin. A fall back through to sub-20/100 would bring sub-$30,000 levels back into play.

Bitcoin Price Action

At the time of writing, Bitcoin was down by 0.22% to $40,000. A move through the day’s $40,189 pivot would support a run at Friday’s high $40,981. Bitcoin would need plenty of support to break out from the first major resistance level at $40,881. In the event of an extended rally, Bitcoin could test the third major resistance level at $43,157 before any pullback. The second major resistance level sits at $41,673.

Failure to move through the pivot would bring the first major support level at $39,397 into play. Barring another extended sell-off, however, Bitcoin should avoid sub-$38,000 levels. The second major support level at $38,705 should limit the downside.

Looking at the EMAs and 4-hourly candlesticks (below), the signal has become more bearish. Bitcoin continues to sit well below 50-day EMA, which has narrowed on the 100-day and 200-day EMAs overnight. The current sell-off has also seen the 100-day EMA converge on the 200-day EMA. A bearish cross of the 100-day EMA through the 200-day EMA would deliver another loss. A bearish cross of the 50-day EMA through the 100-day and 200-day EMAs would be particularly bearish.

For the bulls, a Bitcoin move back through the 200-day EMA, currently at $41,900, would provide some support.

This article was originally posted on FX Empire

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