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BTC Fear & Greed Index Maintains Stability Despite Bitcoin's Return to $16,000

Alina Haynes

Nov 23, 2022 15:16

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Bitcoin (BTC) increased by 2.87 percent on Tuesday, snapping a two-day losing run. The risk of FTX contagion diminished as news updates on FTX assets permeated the crypto news wires. Despite Tuesday's market increase, the Fear & Greed Index remained unchanged at 22/100, with contagion risk remaining a constant concern.

 

Bitcoin (BTC) climbed by 2.87% on Tuesday. BTC closed the day at $16,215, partially correcting Monday's 3.15% decline. Notably, Bitcoin dipped below $16,000 for the second session in a row.

 

BTC fell to a midmorning low of $15,616 after a mixed start to the day. BTC reached a high of $16,294 in early afternoon trading, avoiding the First Major Support Level (S1) around $15,400. BTC surpassed the First Major Resistance Level (R1) at $16,218 before retracing its gains to below $16,050. BTC retested R1 after finding late support, before retreating.

 

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The prospect of FTX contagion continued to dampen investor sentiment on Tuesday after Genesis issued a bankruptcy notice.

 

Nonetheless, market conditions improved by late morning. FTX's $1.24 billion in cash reserves and news of Tron CEO Justin Sun and Ripple CEO Brad Garlinghouse eyeing FTX assets alleviated investor anxiety.

 

The cash reserves and asset sales should mitigate the losses of the top 50 creditors, who are exposed to FTX by $3.1 billion.

 

Nonetheless, notwithstanding the announcement, FTX contagion continues to pose a persistent risk to the broader market. Tuesday, the judge overseeing the FTX bankruptcy proceedings authorized the redaction of client names. The omission may leave investors confused about potential FTX-linked platforms that may have liquidity concerns.

 

On Tuesday, the NASDAQ Composite Index also found support. Demand for risky assets increased as fears of a holiday spending slump subsided. The NASDAQ gained 1.36 percent. This morning, though, the NASDAQ mini was down 23.5 points.

 

Later on today, the US Jobless claims, private sector PMIs, consumer sentiment, core durable goods, and FOMC meeting minutes will garner attention. The statistics and minutes will provide guidance for the cryptocurrency market.