FxWirePro- BTCUSD Daily Outlook

BTCUSD pared some of its gains after less dovish FOMC meeting minutes. The minutes meeting confirm that rates are at a peak and inflation is cooling down. The central bank will take further action depending on economic data. It hit a low of  $41454 and is currently trading around $43246.

BTC ETF

According to a crypto investment services provider Matrixport, the US SEC is expected to reject all BTC ETFs. The commission will approve a spot ETF by Jan 10th.

Major Economic data for the week

Economic calendar -

Jan  4th, 2024, US ADP Employment   (1:15 pm GMT)

                        US initial jobless claims FOMC meeting minutes (7:00 pm GMT)

Factors to watch for Bitcoin price action-

  US markets -

 NASDAQ (negative correlation with BTC) - Bullish (neutral for BTC). The 60-day correlation between Bitcoin and NASDAQ 100 turned negative, according to data from Kaiko. Any break below 16330 will drag the index to 16000/15695.

  According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 91.20% from 81.40% a week ago.

 Technicals-

Minor support- $43000.  Any break below will take it to the next level at $41590/$40700.

 Bull case-

Primary supply zone -$46000.  Any surge past this level confirms a bullish continuation. A jump to $48000/$50000 is possible.      

  Secondary barrier- $50000. A close above that barrier targets $52000/$56600.

 It is good to buy on dips around $41800 with SL around $39800 for TP of $50000.