BTCUSD pared some of its gains after Fitch's downgrade. It has lowered the credit rating of the United States from AAA+ to AA+.BTC hits a low of $28929 and currently trading around $29121.
Major economic data for the week
Aug 3rd, 2023,
US initial jobless claims (12:30 pm GMT)
US ISM services PMI (2:00 pm GMT)
Aug 4th, 2023, US Non-Farm employment change (12:30 pm GMT)
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC) - Bullish (neutral for BTC). The correlation between Bitcoin and NASDAQ diverged and 90 -the day correlation dropped to almost zero. Any decline below 15200 will take the index to 14925.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 82.50% from 78.70% a week ago.
Technicals-
Major support- $27500. Any break below will take it to the next level at $25000/$23800/$23300 if possible.
Bull case-
Primary supply zone -$32000. The breach above confirms minor bullishness. A jump to the next level of $36300/$40300/$41349 is possible.
Secondary barrier- $42600. A close above that barrier targets $48800/$50000.
It is good to buy on dips around $27500-600 with SL around $24500 for TP of $35000/$40000.
