BTCUSD holds above the $50000 level despite strong US CPI. It hit a high of $51700 and is currently trading around $51096.
The US yearly CPI falls to 3.1 in Jan from 3.4%, above expectations of 2.9%.
Factors to watch for Bitcoin price action-
US markets -
NASDAQ (negative correlation with BTC) - Bullish (neutral for BTC). The NASDAQ pared some of its gains as US CPI data decreased rate cut hopes. Any daily close above 18000 will take the index to 18200/18500.
According to the CME Fed watch tool, the probability of a no-rate cut in Mar increased to 91% from 81% a week 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- $50000. Any break below will take it to the next level at $48300/$47800/$46000.
Bull case-
Primary supply zone -$52500. Any close above confirms a bullish continuation. A jump to $55000/$60000 is possible.
Secondary barrier- $60000. A close above that barrier targets $69000.
It is good to buy on dips around $50000 with SL around $48000 for TP of $60000.
