FxWirePro- BTCUSD Daily Outlook

FxWirePro- BTCUSD Daily Outlook

BTCUSD prices pared some of its gains on board-based US dollar buying. It hit a low of $40345 and is currently trading around $40604.

According to Santiment Sharks and Whales BTC holdings remain down compared to October month.

 Economic data-

The University of Michigan rose to 78.80 in Jan compared to a forecast of 69.80, the highest level since Jul 2021.t of -7.0.

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. The NASDAQ breaks the 17000 level after a long consolidation. Any break above 17350 will take the index to 17500/17800.

 According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 97.40% from 94.80% a week ago.

 Technicals-

Minor support- $40000.  Any break below will take it to the next level at $34950/$30000.

 Bull case-

Primary supply zone -$41500.  Any surge past this level confirms an intraday bullishness. A jump to $43500/$45000/$46180/$49050 is possible.      

  Secondary barrier- $50000. A close above that barrier targets $52500/$60000.

 It is good to buy on dips around $40000 with SL around $38000 for TP of $50000.