Bitcoin price returns to $22K despite ‘least volatile’ US CPI reaction
Bitcoin (BTC) rallied above $22,000 after Wall Street opened on Feb. 14 as important U.S. inflation data came in “mixed” results.
BTC price hits 5-day CPI high
Data from Cryptooshala Markets Pro and trade view followed BTC/USD as it tested multi-week lows twice on hourly timeframes before turning higher.
The pair saw sudden volatility in line with forecasts as the January CPI (CPI) the numbers hit, something repeated at the start of trading on Wall Street.
However, while still in a tight trading range, Bitcoin’s reaction was actually quite muted, with up and down moves only involving a few hundred dollars at a time.
This reflected the CPI data itself, which was broadly in line with market expectations. The moderate exception was the annual figure, which was “hot” 0.2% above the planned 6.2%.
“US inflation is mixed,” market commentator Holger Zschepitz said. wrote as part of the reaction of social networks.
Inflation in the US is mixed. The consumer price index for January was in line with the forecast compared to the previous month, amounting to +0.5% overall and +0.4% mostly. On an annualized basis, things were a little hot: heading +6.4% (compared to +6.5% in December, but up +6.2% in St. Petersburg) and +5.6% (compared to +5 .7%, but above +5.5% in St. Louis). (@knowledge_vital) pic.twitter.com/do5yNoEyIa
— Holger Zschepitz (@Schuldensuehner) February 14, 2023
Cryptocurrency circles also noted the lack of panic that accompanied the reaction of the crypto markets.
“This appears to be one of the least volatile market reactions to the US CPI since 2022,” investment research resource Game of Trades. commented.
With few signals coming from macroeconomics, Bitcoin traders thus looked at potential range highs and lows to determine future short-term price action.
“Narrow daily range at the moment.” – Crypto Chase summarize along with an explanatory diagram.
“I think we end up interacting with both the red box and the liquidity below. I would watch red box shorts and longs after liquidity was 20.3k.”
Fellow trader Skew added that the whales have shortened the long exposure of BTC post-print.
$BTS Perp CVD buckets and delta orders
The market is definitely biased towards holding short positions.
Some whales cut their long positions after the CPI. pic.twitter.com/fogJG1XxkJ
— Skew Δ (@52kskew) February 14, 2023
Prior to this, monitoring of the resource Material Indicators revealed whales, arranging what he likened to a trap for retail investors.
#FireCharts shows #Bitcoin whales trying to lure retail to higher levels before #installation price how purple whales sell in retail supply liquidity. Also note that the buy wall has returned to the $24.4K range at two levels. If the upper limit of $6 million is reached, I expect the lower $18 million to fall.#NFA pic.twitter.com/sG3O9IzXhC
— Material indicators (@MI_Algos) February 14, 2023
DXY forms a permanent focus
In equities, a similar lackluster reaction to the CPI saw the S&P 500 and Nasdaq Composite open flat.
First Weekly Death Cross – 5 Things You Need to Know About Bitcoin This Week
The US dollar index (DXY), which some have focused on ahead of the weekly releases of macroeconomic data, rose briefly above 103.5 before returning to its original level.
“I said watch out for DXY. He almost hit the green frame and rebounded. In case it starts rising, crypto imo is bearish,” popular trader Crypto Ed. wrote in part of his latest Twitter updates.
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.
Credit : cointelegraph.com