BTCUSD is consolidating after one week of sell-off. The pair lost its shine after the FOMC meeting minutes shows that the central bank to hike rates until inflation cools -off. The strength in the US dollar and surging US treasury yields also put pressure on BTC at higher levels.BTC hits a low of $20971 at the time of writing and currently trading around $21139.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Bearish (negative for BTC). The index dropped more than 5% from a minor top of 13727. Any close below 13300 confirms a bearish continuation.
US bond yields (Bullish)-Negative for BTC. US 10-year yield gained more than 19% from the recent low of 2.51%.
Technicals-
Major support- $20000. Any Break below will take to the next level at $17500/$15800 is possible.
Bull case-
Primary supply zone -$22000. The breach above confirms minor bullishness. A jump to the next level of $23020/$23530/$24500/$25400/$30000 is possible.
Secondary barrier- $33000. A close above that barrier targets $37000/$4000.
It is good to sell on rallies around $22000 with SL around $23500 for TP of $17550.
