FxWirePro- BTCUSD Daily Outlook

BTCUSD traded weak for a second consecutive week on risk aversion. BTC hit a low of $25350 and currently trading around $25946.

US existing home sales declined by 2.2% in July to a seasonally adjusted annual rate of 4.07 million. August US Richmond manufacturing index came at -7 vs. expected -10.

 Aug 23rd, 2023,  US flash  manufacturing and services PMI  (1:45 pm GMT)

Factors to watch for Bitcoin price action-

  US markets -

 NASDAQ (positive correlation with BTC) - Bearish (neutral for BTC). The correlation between Bitcoin and NASDAQ diverged and 90 -the day correlation dropped to almost zero. Any decline below 14500 will take the index to 14000.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 85% from 90% a week ago.

Technicals-

RSI- 20 (Oversold in the daily chart)

Major support- $25000.  Any break below will take it to the next level at $23800/$23300/$20000 if possible.

 Bull case-

Primary supply zone -$27000. The breach above confirms minor bullishness. A jump to the next level of $30000/$32000/$36300/$40300/$41349 is possible.      

  Secondary barrier- $42600. A close above that barrier targets $48800/$50000.

 It is good to buy on dips around $25000 with SL around $20000 for TP of $35000/$40000.