BTCUSD prices hold above $40000 after a massive sell-off. It hit a high of $40500 and is currently trading around $ 40045.

Economic data-

US flash manufacturing and services PMI in Jan came at 50.30 and 52.90 respectively, compared to a forecast of 47.6 and 51.40. Markets eye ECB, and US GDP data for further direction.

Factors to watch for Bitcoin price action-

US markets -

NASDAQ (negative correlation with BTC) - Bullish (neutral for BTC). The NASDAQ hits an all-time high after upbeat Netflix earnings. Any break below 17450 will drag the index to 17180/17000.

According to the CME Fed watch tool, the probability of a no-rate cut in Jan decreased to 97.40% from 96.90% a week ago.

Technicals-

BTCUSD trades below the short-term moving average (21 and 55 EMA0 and the long-term moving average (200 EMA) in the 4-hour chart.

Minor support- $38000. Any break below will take it to the next level at $34950/$30000.

Bull case-

Primary supply zone -$40700. Any surge past this level confirms an intraday bullishness. A jump to $41500/$43500/$45000/$46180/$49050 is possible.

Secondary barrier- $50000. A close above that barrier targets $52500/$60000.