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.
