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.
