Who’s ready for some crypto trading?
In case you missed it, China printed a waaay better-than-expected manufacturing report earlier today.
The upside surprise, combined with start-of-month risk-taking helped push the risk-sensitive Bitcoin (BTC/USD) to a key technical resistance.
Bitcoin (BTCUSD) 1-Hour Chart by TradingView
I’m talking about the $23,800 mark yo!
As you can see on the 1-hour chart, the inflection point served as support in late February and held has resistance at least once in the last week.
Will the area hold as resistance again today?
Moving averages are still on selling mode with both the 100 and 200 SMAs pointing lower. Price also hasn’t convincingly broken above the 200 SMA yet, so BTC/USD could still see some selling.
Meanwhile, Stochastic has not only hit its overbought status, it also looks ready to cross lower.
Keep an eye out for the overall risk appetite and dollar demand as more traders trade the first trading day of the month.
An extension of optimism from China’s strong factory activity could take BTC/USD to previous areas of interest like $24,500 or even the $25,000 previous highs.
But if markets dwell on global growth concerns, increasing economic tensions between the U.S. and China, and hawkish interest rate expectations, then BTC/USD could get dragged back down to the $24,450 mid-range or $23,000 range support zones.
Not sure where to place your entries stops? BTC/USD’s average volatility might help!
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