FxWirePro- BTCUSD Daily Outlook

BTCUSD prices trade below $40000 as early rate cut hopes diminish. It hit a low of $38900 and is currently trading around $38927.

Grayscale  GBTC  ETF  saw over outflow of $640 million. The total outflow so far is $3.45 billion.

 Economic data-

Markets eye Richmond manufacturing index data for further direction.

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 showed a minor sell-off after a massive rally for the past two days. Any break above 17500 will take the index to 17800/18000.

 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- $38000.  Any break below will take it to the next level at $34950/$30000.

 Bull case-

Primary supply zone -$40700.  Any surge past this level confirms an intraday bullishness. A jump to $41500/$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 $38000 with SL around $35000 for TP of $50000.