BTC and a Return to $31,000 in the Hands of US Stats and the Courts

Key Insights:

• On Monday, BTC fell by 0.68% to end the day at $30,334.
• It was a busier Monday, with the Chinese economy and Binance weighing on investor sentiment.
• However, the technical indicators remain bullish, signaling a return to $32,500.

On Monday, bitcoin (BTC) fell by 0.68%. Following a 0.24% loss on Sunday, BTC ended the day at $30,334. Significantly, BTC extended its losing streak to three sessions.

A bearish start to the day saw BTC fall to an early low of $29,983. BTC fell through the First Major Support Level (S1) at $30,205 before rising to an early afternoon high of $30,743. However, falling short of the First Major Resistance Level (R1) at $30,999, BTC slid back to sub-$30,500 and into the red.

China Growth and Binance Left BTC and the Broader Market in the Red

It was a quiet start to the week on the US economic calendar. There were no US economic indicators to draw interest on Monday. The lack of stats left the crypto news wires to move the dial.

After the bullish response to the prospects of an influx of sticky institutional money, China’s economic growth concerns weighed on investor sentiment. On Monday, S&P Global revised China’s 2023 economic growth forecast from 5.5% to 5.2%. While the revision raised the prospects of a Beijing stimulus package, the Chinese government has yet to appease the markets.

Binance news added to the bearish sentiment. On Monday, presiding Judge Amy Berman Jackson denied the defendants’ motion to prevent the SEC from making misleading public statements pertaining to the case.

It was bad news for the Binance team, which aimed at blocking the SEC from making public statements.

The Day Ahead

It is a busy Tuesday. US consumer confidence and core durable goods orders will draw interest this afternoon. A slide in the CB Consumer Confidence Index to sub-100 would weigh on riskier assets.

While the US economic indicators will draw interest, investors should monitor the crypto news wires for SEC v Ripple case-related news.

Beyond the SEC v Ripple case, Coinbase (COIN) and Binance-related news will need consideration, with Fed chatter also likely to move the dial.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.07% to $30,311. A mixed start to the day saw BTC fall to an early low of $30,289 before rising to a high of $30,345.

BTC Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 50-day EMA ($29,539). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($29,539) would support a move through R1 ($30,724) to give the bulls a run at R2 ($31,113) and $31,500. However, a fall through S1 ($29,964) would bring S2 ($29,593) and the 50-day EMA ($29,539) into view. A fall through the 50-day EMA would signal a near-term bullish trend reversal.

Resistance & Support Levels