Bitcoin (BTC) Witnesses Red, Awaiting Tricky Week for the Markets

The broad market and Bitcoin might be waiting a complicated week ahead. Market sentiment on regulatory oversight and Federal Reserve’s monetary policy remains vital drivers.

A three-day climbing streak for Bitcoin ended on Sunday. Meanwhile, the world’s leading cryptocurrency ended yesterday with a 0.75% loss to $37,914. That’s after the 1.11% surge on Saturday.

Nevertheless, five days in green from seven might have comforted BTC bulls. Bitcoin gains 4.4% during the week that ended on January 30, partially reversing a 15.7% drop from the week before.

The broad market and Bitcoin secured more support during Saturday sessions, following the 1.54% NASDAQ-fueled rally on Friday. However, the narrative changes on Sunday amid multiple uncertainties ahead, translating to struggles by the majors.

BTC Fear and Greed Index

Five days in the green from seven had the BTC Fear and Greed Index surging. Extending the recovery from the January 23 11/100, it climbed to 29/100 yesterday, the January 3 peak. Meanwhile, a drop towards 20/100 during this publication shows uncertainty with BTC investors.

For now, the index sits inside the red region. Remember, Bitcoin Fear and Greed Index has been within the red zone since December 28. The index stayed at 41/100 before climbing to 84/100 on November 9. However, reverses emerged. Meanwhile, a move towards 30/100 and inside the orange territory would reveal a ‘buy’ opportunity.

The Week Ahead

Two vital market forces would detect BTC and the overall marketplace. Sentiments of Federal monetary policy and effects on risky assets’ appetite remain the top driver in the coming week. The 2nd area that needs focus is regulatory actions.

BTC Price Actions

While posting this content, BTC traded at $37,761 after a 0.40% drop. Keeping $37,901 away might back a run-up to Sunday’s peak of $38,403 and overcome the initial massive resistance at $38,416.

An extended rally will expose $40,000. BTC has not touched this level since January 21. However, Bitcoin should overcome the 2nd resistance at $38,918 to surge higher. Nevertheless, the 3rd crucial resistance stands at $39,935.

Failure to overpower the day’s pivot might mean hitting $37,399. BTC should keep sub-$36,500 away, excluding extended falls. The 2nd critical support at $36,884 should limit downtrends.

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