FxWirePro- BTCUSD Daily Outlook

FxWirePro- BTCUSD Daily Outlook

BTCUSD trades above $50000 and hit a market cap of $1 trillion for the first time since Dec 2021 despite strong US inflation data. It hit a high of $52545 and is currently trading around $52224.

Markets eye US retail sales and the Empire State manufacturing Index for further movement.

The NET cumulative flows for the 10 bitcoin ETFs (incl GBTC) have doubled in the past 3 days to over $3b.

Factors to watch for Bitcoin price action-

  US markets -

 NASDAQ (negative correlation with BTC) - Bullish (neutral for BTC). The NASDAQ recovered its losses made after US inflation data decreased the chance of an early rate cut. Any daily close above 18000 will take the index to 18200/18500.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 89.5% from 81% a week ago.

 Technicals-

BTCUSD trades above the short-term moving average (21 and 55 EMA) and above the long-term moving average (200 EMA) in the daily chart.

Minor support- $50000.  Any break below will take it to the next level at $48300/$47800/$46000.

 Bull case-

Primary supply zone -$52500.  Any close above confirms a bullish continuation. A jump to $55000/$60000 is possible.      

  Secondary barrier- $60000. A close above that barrier targets $69000.

 It is good to buy on dips around $50000 with SL around $48000 for TP of $60000.