NASDAQ 100 Friday Rally Supports Bitcoin (BTC)
Bitcoin (BTC) was trading in the green for the second day in a row on Friday earlier this year. Moreover, the US futures gave significant support after reversing losses late on the prior day.
After gaining 0.99% on Thursday, Bitcoin gained 1.54 percent on Friday to close at $37,760. Also, the news wires were unable to exert any pressure on Bitcoin on the day, with the U.S. equity markets directing Bitcoin.
What is NASDAQ?
Nasdaq is a global online stock exchange where you can buy and sell stocks. It began as a subsidiary of the National Association of Securities Dealers (NASD). We now know it as the Financial Industry Regulatory Authority (FINRA). Its name was originally an acronym for “National Association of Securities Dealers Automated Quotations.” Nasdaq was created when the Securities and Exchange Commission (SEC) persuaded the NASD to automate the market for securities that were not listed on an exchange. As a result, the first electronic trading system came into existence. It started working on February 8, 1971.
NASDAQ 100 Index
The Nasdaq 100 Index is a collection of the 100 largest traded companies in the United States. These are listed on the Nasdaq stock exchange. The index covers corporations from a variety of industries except for the financial business. These usually include commercial and investment banks. Moreover, retail, biotechnology, industrial, technology, health care, and other non-financial sectors are among them.
The index uses an updated capitalization approach. These updated ways use individual weights of included goods based on their market capitalization. Weighting allows for limits that minimize the effect of the larger corporations. Meanwhile, it still balances the index. NASDAQ does this by examining the index’s arrangement every quarter. Also, it adjusted weightings if the distribution requirements aren’t met.
The NASDAQ and Bitcoin
On that day, economic data from the United States took a back seat as investors jumped in on the downturn. The NASDAQ’s Friday rebound in January was the most pronounced of the year. It was excellent with optimism about corporate earnings counteracting fears about interest rates.
The positive sentiment from the stock markets in the United States flowed over to the crypto markets. As a result, it boosted Bitcoin’s price for the day.
Ethereum (ETH) gained 5.0 percent in the crypto market. Meanwhile, Cardano (ADA) and Solana (SOL) also gained ground. However, the day’s gains were modest.
Terra (LUNA), one of the top ten cryptos, continued to struggle, falling 7.06 percent.
The Bitcoin Fear & Greed Index
The Bitcoin Fear & Greed Index saw some gains after two straight days in the green. After falling to 11/100 on January 23rd, the Index rose to 24/100 on Friday, edging closer to 30/100, a crucial threshold.
However, the Bitcoin Fear & Greed Index remained unchanged at 24/100 at the time of publication.
The indicator is currently in red, indicating that the market is bearish. On the other hand, a return to 30/100 and into the orange would show a change in sentiment and a buying opportunity. The Index had increased to 84/100 on the 9th of November before going into reverse.
Bitcoin Price Action
Bitcoin was down 0.61 percent to $37,529 at the time of writing. Avoiding the day’s $37,337 pivot and trading below $37,000 would open the door to the first significant resistance mark at $38,478. However, to break clear of Friday’s high of $38,055, Bitcoin would need a lot of support.
If the price falls below the pivot for the day, it will test the first significant support level at $36,620. However, a prolonged sell-off would bring sub-$35,000 levels back into play. $35,479 is the second significant support level.
The signal has gotten more bullish when looking at the EMAs. The 50-day EMA continues to distance itself from the 100-day EMA. Meanwhile, it narrows its gap with the 200-day EMA. Additionally, a continued narrowing would support a return to $38,000 levels. Bitcoin had broken clear of the 200-day EMA, which is currently around $37,488 as of late Friday.
On the other hand, the market’s perception of impending US crypto supervision will almost certainly be a test for Bitcoin and the majors over the weekend.
