BTCUSD dropped by another 5% yesterday after upbeat US ISM services PMI. It came at 56.90 in Aug compared to a forecast of 55.40, the second consecutive monthly increase. Crypto markets were one of the worst performers in the past five months with BTC losing more than $30000 from a minor top of $48234. The pullback in US treasury yields puts pressure on Bitcoin at higher levels.BTC hits a low of $18540 at the time of writing and currently trading around $18764.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Bearish (negative for BTC). The index dropped more than 12% from a minor top of 13727. Any close below 12000 confirms a bearish continuation.
US bond yields (Bullish)- Bearish for BTC. US 10-year yield gained more than 34% from a low of 2.51%.
Technicals-
Major support- $18500. Any break below will take to the next level at $17500/$15000/$12570 is possible.
Bull case-
Primary supply zone -$20600. The breach above confirms minor bullishness. A jump to the next level of $220000/$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 $21000 with SL around $22500 for TP of $15200.
