BTCUSD pared most of its gains after upbeat US CPI data. US CPI hits a 40-year high at 9.1% yearly basis in June compared to market expectations of 8.8%. The surge in inflation has increased the chance of a 100 bpbs rate hike by the Fed in the next meeting. It hits a low of $19364 at the time of writing and currently trading around $19720.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Negative (Bearish for BTC). The index continues to trade lower for the fourth consecutive day and holds below 12000. Any close below 11300 confirms a bearish continuation.
US bond yields (Mixed)-Neutral for BTC. US 10-year yield lost more than 6% from a minor top 3.10%.
Technicals-
Major support- $19000. Any break below will take the pair to next level $18600/$17500/$16200 is possible.
Bull case-
Primary supply zone -$20500. The breach above confirms minor bullishness. A jump to the next level of $22500/$25400/$30000 is possible.
Secondary barrier- $33000. A close above that barrier targets $37000/$4000.
It is good to sell on rallies around $20580-600 with SL around $225000 for TP of $15000.
