FxWirePro- BTCUSD Daily Outlook

BTCUSD lost its shine after the Fed monetary policy. It hit a low of  $63723 yesterday and is currently trading at around $63799.

Fed has kept its rates unchanged at 5.25-5.50% yesterday in line with market estimation. The central bank said that economic activity remains steady and inflation eased over the past year but still elevated above the fed’s target of 2%.

Fed Chair Jerome Powell said Wednesday that the central bank could lower its benchmark interest rate at its next meeting in September 2024.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 88.50% from 86.30% a day ago.

  US markets -

 NASDAQ (negative correlation with BTC) - Bullish  (neutral for BTC). The NASDAQ recovered sharply as the Fed chairman said that the fed would cut rates in Sep if inflation cools down.  Any close above 19600 will take the index to 20000.

 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/$57000/$53000/$50000.

 Bull case-

Primary supply zone -$70000.  Any break above confirms a bullish continuation. A jump to $75000 is possible.      

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

 It is good to sell on rallies around $66900-$67000 with SL around $72000 for TP of $54000.