Chart pattern- Inverted Head and Shoulder
Potential reversal zone- $52530.
BTCUSD broke the neckline and held above that level after the Fed rate cut. It hit a high of $62736 at the time of writing and is currently trading at around $62699.
US Fed cut rates by 50 bpbs yesterday to 4.75% -5% compared to a market estimate of 25 bpbs. The central bank mentioned that Job gains have slowed and inflation is moving towards fed target of 2% but remains slightly elevated.
BTCETF saw inflows of $250 million on Monday led by iShares Bitcoin drew $15.8 million.
US markets -
NASDAQ (No correlation with BTC) - Bullish (neutral for BTC). The NASDAQ trades higher after the 50 bpbs rate cut. Any close above 20000 will take the index to 20500.
Technicals-
BTCUSD trades above the short-term moving average 34- EMA and below 55 EMA and the long-term moving average (200 EMA) in the 4-hour chart.
Minor support- $57000. Any break below will take it to the next level at $55000/$52500/$50000/$46000.
Bull case-
Primary supply zone -$63000. Any break above confirms a intraday bullishness. A jump to $65000/$67000/$70000 is possible.
Secondary barrier- $70000. A close above that barrier targets $750000/$80000.
Indicator (8-hour chart)
CCI (14)- Bullish
CCI (50)- Bullish
Average directional movement Index - Bullish
It is good to buy on dips around $61500 with SL around $58500 for TP of $70000.
