Bitcoin price eyes $23K despite US dollar strength hitting 6-week high

Bitcoin (BTC) reached its all-time high in almost a week on Feb. 15 as “extremely positive” economic data lifted risk asset sentiment.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

BTC price heading towards $23,000

Data from Cryptooshala Markets Pro and trade view showed that BTC/USD gained 2.2% on the day to expect a return of $23,000.

Analysts were already predicting volatility, and the latest economic data from the US came as a pleasant surprise.

Retail sales and the Empire State manufacturing index beat market expectations, demonstrating a more resilient economy despite the Federal Reserve’s restrictive policies.

“Extremely positive numbers. Major retail sales and retail sales were better than expected, with the manufacturing index more positive than expected,” Michael van de Poppe, founder and CEO of trading firm Eight, told Cryptooshala. reacted.

“The aid rally seems to be going on.

The figures followed the consumer price index (CPI) for January, which was close to expectations and provided only limited volatility as a result.

However, Bitcoin made a much bigger statement that day, causing some to rethink their short-term outlook on the market.

“Today I clearly misjudged my expectations for a lower TF, expecting some correction first. As mentioned: $22.3k return is optimistic for me and paves the way to 25k imo,” Popular Trader Crypto Ed. recognized in the Twitter comment section.

Fellow trader Skew, meanwhile, was looking at $22,500 as an important zone for the bulls to come back next.

“$22.5K was strong support and the price has been consolidating higher for 19 days; a recovery to this level would be quite optimistic for BTC,” 4-hour chart update. read.

“Otherwise, a failure will cause the price to test the consolidation of the breakout.”

Annotated BTC/USD chart. Source: Skew/Twitter

DXY surge could lead to ‘tighter financial conditions’

Meanwhile, at the time of writing, US stocks were biding their time, with the S&P 500 still down 0.5% on the day.

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The Nasdaq Composite Index added a modest 0.7%, while the popular US Dollar Index (DXY) broke 104 for the first time since January 6, warning of asset danger.

US dollar index (DXY) 1-day candlestick chart. Source: Trading View

“I would still be careful here. Keeping an open mind on things… both btc and eth are still below the jan maximum. … dxy pushes up. until you get too optimistic,” thus TraderSZ argued about the prospects of the main crypto assets.

Investor Michael J. Kramer, meanwhile, has predicted DXY to fall to 106, along with “tougher financial conditions,” which could end up being a recipe for defeat for the cryptocurrency recovery.

“Despite all the serious pressure on the dollar, the DXY is trading above the 2022 daily close. Interesting…” — Caleb Franzen, Senior Market Analyst, Cubic Analytics, added.

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.

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