-FxWirePro- BTCUSD Daily Outlook

-BTCUSD declined sharply following the footsteps of the US stock market. It hit a low of $55602 and is currently trading at around $56483.

BTC showed a minor weakness after the US ISM manufacturing came below forecast raising US growth concerns.

BTC ETF has seen an outflow of $287 million, the largest since May 1st led by Fidelity FBTC outflow of $162.3 million.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 63% from 62% a week ago.

US markets -

NASDAQ (negative correlation with BTC) - Bearish (neutral for BTC). The NASDAQ market tumbled sharply led by semiconductor companies. Any close below 17780 will drag the index to 18400.

Technicals-

BTCUSD trades below the short-term moving average 34- EMA and 55 EMA and the long-term moving average (200 EMA) in the 4-hour chart.

In the daily chart also BTC holds below the short and long-term moving averages. This confirms a minor weakness.

Minor support- $54000. Any break below will take it to the next level at $53000/$50000/$46000.

Bull case-

Primary supply zone -$61200. Any break above confirms a bullish continuation. A jump to $61800/$63000/$65000/$67000/$70000 is possible.

Secondary barrier- $70000. A close above that barrier targets $750000/$80000.

Indicator (4-hour chart)

CCI (14)- Bearish

CCI (50)- Bearish

Average directional movement Index - bearish

It is good to sell on rallies around $59745-750 with SL around $56000 for TP of $50000.

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