FxWirePro- BTCUSD Daily Outlook

BTCUSD prices surged above $43000 after a massive sell-off. It hit a high of  $43775 and is currently trading around $ 43452.

Bitcoin supply declined to 5.40% on Jan 30th from 6.05% in August. The decrease in supply will reduce the selling pressure on Bitcoin.

Markets eye US CB consumer confidence for further direction.

Factors to watch for Bitcoin price action-

  US markets -

 NASDAQ (negative correlation with BTC) - Bullish (neutral for BTC). The NASDAQ recovered more than 200 points ahead of Microsoft and Alphabet results. Any break above 17685 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 97.9% from 96.90% a day ago.

 Technicals-

BTCUSD trades above the short-term moving average (21 and 55 EMA) and above the long-term moving average (200 EMA) in the daily chart.

Minor support- $42800.  Any break below will take it to the next level at $42000/$41400/$40700.

 Bull case-

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

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

 It is good to buy on dips around $42500 with SL around $41400 for TP of $50000.