BTCUSD pared some of its gains ahead of Fed monetary policy. Any hawkish hike by Fed will push BTC prices further lower. Bitcoin surged nearly $3000 in the past ten days on short covering. Market sentiment improved slightly as UK's new PM election increased political stability. BTC hits a low of $20439 at the time of writing and currently trading around $20776.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Bullish (Positive for BTC). The index facing a hurdle at $11700. Any close above 11475 will push the NASDAQ higher to 12000.
US bond yields (Bullish)- Bearish for BTC. The US 10-year yield recovered nearly 4% after hitting a low of 3.91%. The US 10 and 2-year spread widened to -42 basis points from 23.9- bpbs.
Technicals-
Major support- $18000. Any break below will take you to the next level at $17500/$15000/$12570.
Bull case-
Primary supply zone -$21710. The breach above confirms minor bullishness. A jump to the next level of $22550/$23530/$24500/$25000 is possible. Bearish invalidation only if it breaks $25000.
Secondary barrier- $33000. A close above that barrier targets $37000/$4000.
It is good to sell on rallies around $21280-300 with SL around $22700 for TP of $15600.
