BTCUSD pared some of its gains made yesterday on risk aversion. Markets eye US Fed Chairman Powell's testimony today for further direction. Any hawkish comments will further drag the BTC down. The decline in crude oil prices is a positive factor as a reduction in inflation would prevent an aggressive rate hike. It hits a low of $19947 at the time of writing and currently trading around $20260.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC)- Mixed (neutral for BTC). The index declined after a minor pullback. Any break above 11700 will take 12195/1250 confirming bullish continuation.
US bond yields (Bearish)- Positive for BTC. US 10-year yield lost more than 3% from yesterday's high of 3.17%.
Technicals-
Major support- $19980. Any break below will bring an end to the bullish trend, a dip to $17000/$15000 is possible.
Bull case-
Primary supply zone -$21500 (200-H MA). 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.
