BTCUSD showed a minor pullback on rate cut hopes. It hit a high of $56274 at the time of writing and is currently trading at around $55421.
The odds of emergency rate cuts pushing riskier assets higher. BTC ETF has witnessed an outflow of $400 million due to fears of global recession.
According to the CME Fed watch tool, the probability of a 50 bpbs rate cut in Sep increased to 78.50% from 13.20% a week ago.
US markets -
NASDAQ (negative correlation with BTC) - Bearish (neutral for BTC). The NASDAQ pared some of its gains on recession fears. Any close below 17800 will take the index to 17000.
Technicals-
BTCUSD trades below the short-term moving average (21 and 55 EMA) and the long-term moving average (200 EMA) in the 4-hour chart.
Minor support- $54500. Any break below will take it to the next level at $53000/$50000/$46000.
Bull case-
Primary supply zone -$57000. Any break above confirms a bullish continuation. A jump to $60000/$63000/$65000/$70000 is possible.
Secondary barrier- $70000. A close above that barrier targets $750000/$80000.
It is good to buy on dips around $51800-900 with SL around $48000 for TP of $63000/$67000.
