BTCUSD surged more than $5000 this month on upbeat market sentiment. The decline in US CPI has decreased the chance of a 50 bpbs rate hike in Feb meeting. The recovery of 124 BTC worth $2.6 million from the $100 million Harmony protocol hack also supports BTC at lower levels. It hits an intraday high of $21411 and is currently trading around $20785.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Bullish (Positive for BTC). The index traded higher for the seventh consecutive day. Any close above 11605 will push the NASDAQ to 12000.
US bond yields (Bearish)- Bullish for BTC. The US 10-year yield pared some of its loss after hitting a low of 3.417%. Any break and close above 3.40% confirms minor bearishness. The yield spread between 10 and 2-year widened to -73 basis points from -46.9 bpbs.
Technicals-
Major support- $19500. Any break below will take you to the next level at $18300/$16000.
Bull case-
Primary supply zone -$21500. The breach above confirms minor bullishness. A jump to the next level of $23000/$25200 is possible.
Secondary barrier- $25200. A close above that barrier targets $28000/$30000.
It is good to buy on dips around $19500 with SL around $18000 for TP of $25000.
