FxWirePro- BTCUSD Daily Outlook
BTCUSD showed a minor pullback despite a sell-off in stock markets. Global markets declined after the Bank of Japan revises its yield policy. The central bank raised the yield cap limit to 0.50% from 0.25%.BTC hits a high of $16871 at the time of writing and currently trading around $16832.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Bearish (Negative for BTC). The index traded lower for the fifth consecutive day. Any close above 10600 will push the NASDAQ lower to 10000.
US bond yields (Bullish)- Bearish for BTC. The US 10-year yield gained sharply after the BOJ policy change. The US 10 and 2-year spread narrowed to -61.5 basis points from -85 bpbs.
Technicals-
Major support- $16000. Any break below will take you to the next level at $15600/$14800/$13000.
Bull case-
Primary supply zone -$17100. The breach above confirms minor bullishness. A jump to the next level of $17600/$18400 is possible. Bearish invalidation only if it breaks $25000.
Secondary barrier- $18500. A close above that barrier targets $20000/21500.
It is good to buy on dips around $16000 with SL around $13500 for TP of $21500.
