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.
