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.
