On Monday, bitcoin (BTC) rose by 0.28%. Following a 0.48% gain on Sunday, BTC ended the day at $16,690. Notably, BTC avoided sub-$16,500 for the third consecutive session while continuing to come up short of $17,000.
A bearish start to the day saw BTC fall to an early morning low of $16,584 before finding support. Steering clear of the First Major Support Level (S1) at $16,559, BTC rose to a late high of $16,803. BTC broke through the First Major Resistance Level (R1) at $16,686 and briefly through the Second Major Resistance Level (R2) at $16,728 before easing back to end the day at $16,690.
Crypto News Updates and Economic Indicators from China Deliver Support
After a choppy start to the week, updates from the World Economic Forum in Davos delivered market support.
Investors took the more pragmatic view of the crypto market as a positive, with the crypto bulletin giving a positive spin despite the doom and gloom of 2022.
Notably, the WEF said,
“Cryptography and blockchains will continue to be integral parts of the modern economic toolkit.”
The WEF also compared cryptos with the dot-com bubble, saying,
“Just as it took the dot-com bubble bursting in the early 2000s to hand over the future of the internet to more durable companies, business models, and use cases, perhaps 2022 marks the handover of crypto technology and blockchain infrastructure to steadier hands.”
This morning, the all-important Caixin Manufacturing PMI from China also provided support. In December, the Manufacturing PMI fell from 49.4 to 49.0 versus a forecasted 48.8. Investors were able to stomach the modest fall, with the end of the government’s zero-COVID policy raising expectations of a rebound in manufacturing sector activity.
Later today, the US manufacturing PMI will also draw interest along with any FOMC member chatter. The NASDAQ Index will likely guide investors ahead of tomorrow’s FOMC meeting minutes, barring a crypto event.
