BTCUSD trades slightly weak ahead of US CPI. It hit a high of $58070 and is currently trading at around $56533.
Economists predict the U CPI to decline to 2.6% y/y, and core CPI to remain steady at 3.2 y/y.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 67% from 56% a week ago.
US markets -
NASDAQ (No correlation with BTC) - Bearish (neutral for BTC). The NASDAQ trades flat ahead of the US CPI. Any close below 18000 will take the index to 17400.
Technicals-
BTCUSD trades above the short-term moving average 34- EMA and 55 EMA and below the long-term moving average (200 EMA) in the 4-hour chart.
In the daily chart, BTC holds below the short and long-term moving averages. This confirms a minor weakness.
Minor support- $55000. Any break below will take it to the next level at $52500/$50000/$46000.
Bull case-
Primary supply zone -$58975. Any break above confirms an intraday bullishness. A jump to $60000/$61800/$63000/$65000/$67000/$70000 is possible.
Secondary barrier- $70000. A close above that barrier targets $750000/$80000.
Indicator (4-hour chart)
CCI (14)- Neutral
CCI (50)- Bullish
Average directional movement Index - Neutral
It is good to buy on dips around $55000 with SL around $52000 for TP of $67000.
