FxWirePro- BTCUSD Daily Outlook

BTCUSD  surged more than $1000 in the past two days on upbeat market sentiment. Markets eye US CPI data for further movement. Analysts anticipate annual inflation to decline to 6.5% from 7.1% and monthly CPI to remain unchanged at 0.30%. 0.30% m/m. Any minor weakness in US CPI will prevent Fed from aggressive rate hikes (positive for Bitcoin). It hits an intraday high of $18370 and is currently trading around $18158.

Factors to watch for Bitcoin price action-

US markets -

NASDAQ (positive correlation with BTC)- Bullish (Positive for BTC). The index traded higher for the fourth consecutive day. Any close above 11360 will push the NASDAQ till 12000.

US bond yields (Bearish)- Bullish for BTC. The US 10-year yield pared some of its gains after a minor pullback to 3.626%. Any break and close above 3.69% confirms minor bullishness. The yield spread between 10 and 2-year narrowed to -69.2 basis points from -77 bpbs.

Technicals-

Major support- $16000. Any break below will take you to the next level at $15600/$14800/$13000.

Bull case-

Primary supply zone -$18400. The breach above confirms minor bullishness. A jump to the next level of $20000/$21500 is possible.          

   Secondary barrier- $21500. A close above that barrier targets $22800/$25000.

It is good to buy on dips around $17800 with SL around $16000 for TP of $25000.