ETH Eyes $1,350 as BTC Bulls Aim for Price Correction to $18,000 in China

On Sunday, Bitcoin (BTC) rose 1.41%. After reversing a 1.18% loss from last Saturday, BTC ended the week 4.21% higher at $17,127. A bullish session saw BTC end the day at $17,000 for the third time in five sessions.

Bullish throughout the Sunday session, BTC surged from an early morning low of $16,885 to a recent hour high of $17,210.

Avoiding major support levels, BTC breached the first major resistance level (R1) at $17,067. However, when BTC failed to reach the second major resistance level (R2) at $17,245, BTC fell again to end the day at levels below $17,200.

Investor reaction to China’s reopening plans provided morning support

After a bearish session on Saturday, investor sentiment turned bullish on Sunday. More updates on China’s reopening plans provided support on Sunday and this morning.

The Chinese government is easing COVID-19 restrictions in Shanghai, Bloomberg reported this morning. As other parts of the country ease containment measures, investor hopes for an economic recovery have boosted demand for riskier assets.

The Hang Seng and CSI300 responded to the news with gains of 3.46% and 1.73%, respectively.

However, US economic indicators and the Nasdaq Composite Index may test the buyer’s appetite later today. A sharp drop in the ISM non-manufacturing PMI would fuel fears of a US recession weighing heavily on the Nasdaq and cryptocurrency markets. On the other hand, positive numbers should provide support, although the rise in PMIs and sub-components could call into question the Fed’s pivotal theory.

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