BTCUSD pared most of its gains after upbeat US CPI data. The inflation rose 0.40% in Sep MoM and yearly CPI rose to 8.2% vs an estimate of 8.1%. BTC hits a low of $18183 at the time of writing and currently trading around $18416.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Bearish ( positive for BTC). The index declining for the past four days on weak global equity markets. Any close below 10600 will push the NASDAQ lower to 10300.
US bond yields (Bullish)- Bearish for BTC US 10-year bond yields gained above 4% and hit a fresh 12-year high.
Technicals-
Major support- $18200. Any break below will take to the next level at $17500/$15000/$12570 if possible.
Bull case-
Primary supply zone -$20500 (trend line resistance). The breach above confirms minor bullishness. A jump to the next level of $23000/$25200 is possible. Bearish invalidation only if it breaks $25200.
Secondary barrier- $33000. A close above that barrier targets $37000/$4000.
It is good to sell on rallies around $19900-$20000 with SL around $21000 for TP of $16000.
