FxWirePro- BTCUSD Daily Outlook

BTCUSD  surged sharply after weak US inflation data. It hit a high of $66688 at the time of writing and is currently trading around $66287.

The Consumer Price Index (CPI) rose 0.30% m/m in Apr from 0.40% the previous month, in line with the estimate. The annual CPI dropped by 0.10% points to 3.4%. This has increased demand for riskier assets like Bitcoin.

  US markets -

 NASDAQ (negative correlation with BTC) - Bullish (neutral for BTC). The NASDAQ hits fresh all-time high on rate cut hopes.  Any close above 18800 will take the index to 19000.

According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 97.3% from 91.3% a week ago.

 Technicals-

BTCUSD trades above the short-term moving average (21 and 55 EMA) and the long-term moving average (200 EMA) in the 4-hour chart.

Minor support- $63000.  Any break below will take it to the next level at  $60000/$56000/$50000.

 Bull case-

Primary supply zone -$67500.  Any break above confirms a bullish continuation. A jump to $70000/$73500 is possible.      

  Secondary barrier- $75000. A close above that barrier targets $80000.

 It is good to buy on dips around $63000 with SL around $60000 for TP of $70000.