BTCUSD regained above $20000 on short covering. The pair crashed sharply and lost more than 74% from an all-time high of $69000.A hawkish aggressive rate hike by the fed and surging inflation dragging the riskier assets like BTC and stocks. It hits a high of $21462 and currently trading around $21221.

Factors to watch for Bitcoin price action

US markets

NASDAQ (positive correlation with BTC)- Mixed (neutral for BTC). The index has taken support near 200-W MA) and showed a minor pullback. Any break above 11700 will take 12195/12500.

US bond yields (Bullish)- Negative for BTC. US 10-year yield cooled off slightly after hitting four years high.

Technicals

Major support- $20000. Any break below will bring an end to the bullish trend, a dip to $15000/$10000 is possible.

In the daily chart RSI (14)- 20.36 (Oversold on Jun 18th, 2022). Any decline can be used as an opportunity to buy.

Bull case

Primary supply zone -$22000. The breach above confirms minor bullishness. A jump to the next level of $23000/$24850/$25400/$27000 is possible.

Secondary barrier- $32500. A violation above that barrier targets $37000/$40000.

It is good to buy on dips around $20000 with SL around $17000 for TP of $30000.