Bitcoin traders eye $19K BTC price bottom, warn of ‘hot’ February CPI
Bitcoin (BTC) did not react to the Wall Street open on March 6 as the consensus formed around a potential over $20,000.
BTC price of $19,000 is a ‘breakout target’
Data from Cryptooshala Markets Pro and trade view tracked the sluggish BTC/USD rate as it was clinging to $22,400 at the time of writing.
Sluggish over the weekend, the pair offered few trading opportunities as concerns mounted over the impact of upcoming US macro data.
$BTS 4 hours
Good luck with your trading. pic.twitter.com/nc99kF8HbS
— The Wolf of All Streets (@scottmelker) March 6, 2023
In particular, the February print of the Consumer Price Index (CPI), scheduled for March 14, is expected to be “hot” or better than expected, a Venturefounder analyst said.
“New bitcoin is above the low and the RSI bearish divergence continues,” he said. wrote in a Twitter update daily.
“With the hot CPI coming out and the FOMC meeting later this month, March could be a bad month for risky assets, including BTC. A break from this level would target $19,000 BTC.”
The attached chart shows a potential path to below $20,000 and also shows a bearish divergence in the Bitcoin Relative Strength Index (RSI) formed when the indicator’s trajectory moves in the opposite direction of price – down or up respectively.
CPI prints tend to cause short-term volatility in risky assets, which is often short-lived, however, and bitcoin’s spot price then bounces back.
Continuing, popular trader Crypto Ed also expressed confidence that $19,000 would be the next local BTC price level.
“The biggest bull ladder, but the bottom is already inside. Enjoy the months ahead and don’t be fooled by the lower timeframes!” I read part of the comment on Twitter.
Let’s update this:
$21,000 to 25,000 ✅
25 thousand dollars to 20 thousand ✅
and new one:
23 thousand dollars to 20 thousand
19 thousand dollars to 30 thousand
The biggest bull trap, but the bottom is already inside.
Enjoy the coming months and don’t be fooled by the low TFs! pic.twitter.com/lySuDq5MzH
— Ed_NL (@Crypto_Ed_NL) March 6, 2023
The US dollar has passed a key test
Turning to the macro markets, trading resource Game of Trades drew attention to what he called “strong resistance” to the strengthening of the US dollar.
BTC price “in the trading zone” – 5 things to know about bitcoin this week
Traditionally inversely correlated with Bitcoin, the US Dollar Index (DXY) is now facing a retest of a key trend line.
“DXY is approaching a strong resistance zone after a macro uptrend line recovery”, Game of Trades wrote.
“The reaction here will be critical for all markets.”
Meanwhile, popular trader Crypto Chase saw a tight trading range on the S&P 500, mimicking Bitcoin’s lack of momentum.
Currently using the structure discussed in yesterday’s video. I let the price do whatever it wants here… let it deviate, you don’t miss anything.
A rejection from 4060.75 followed by a pullback is one entry trigger (denoted by the down arrow on the chart).… https://t.co/LA3vCTFuWR pic.twitter.com/ItDw1cUgBb
— Crypto Chase (@Crypto_Chase) March 6, 2023
Attention has already been drawn to the speech on March 7 before the US Congress by Jerome Powell, chairman of the Federal Reserve, in order to receive signals regarding monetary conditions in the future.
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