BTCUSD pared some of its gains made after US inflation.is trading in a narrow range ahead of US CPI data. US CPI declined to 4.9% YoY compared to a forecast of 5%. On a monthly basis, CPI and Core CPI rose 0.40% in line with estimates. Markets eye US debt ceiling negotiations for further direction. BTC hits a low of $26100 this week and currently trading around $26395.
Major economic data this week
May 12th, 2023, Prelim UoM Consumer Sentiment (2 pm GMT)
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (positive correlation with BTC) - Bullish (positive for BTC). The index breaks significant resistance 13250 and holds well above that level. A jump to 13725 is possible.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 12.9% from 0.0% a week ago.
Technicals-
Major support- $26000. Any break below will take it to the next level at $25000/$24300/$2000 is possible.
Bull case-
Primary supply zone -$30000. The breach above confirms minor bullishness. A jump to the next level of $37000/$43200/$48500 is possible.
Secondary barrier- $52200. A close above that barrier targets $60000/$69000.
It is good to buy on dips around $25000 with SL around $23000 for TP of $30000.
