The US Dollar Index (DXY) is growing faster than Bitcoin after Washington’s new economic stimulus.
Bitcoin
BTC
they fall down
$27,959
February 15 hit its highest level in nearly a week as “very good” economic conditions boosted risk sentiment.
BTC price reaches $23,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD up 2.2% on the day to regain $23,000.
Analysts had already predicted instability, and the latest economic data from the United States was a surprising surprise.
The retail sales and the Empire State Manufacturing Index beat market expectations, showing that the economy is improving despite the Federal Reserve’s restrictions.
“Excellent numbers. Average sales and retail sales exceed expectations and the production process is better than expected,” commented Cointelegraph Michaël van de Poppe, founder and CEO of the Eight firm.
“The support meeting will continue as it appears.”
The figures were in line with the January Consumer price index (CPI), which was broadly in line with expectations, with only a small difference.
But bitcoin also reported the biggest highs of the day, prompting some to reconsider their long-term position in the market.
“Today I was clearly wrong with my expectations of a low TF, I was expecting some kind of criticism at first. As we said before: 22,3 thousand. The recovery of the USD worries me and opens the way to 25k,” admitted the famous trader Crypto Ed in a comment on Twitter .
Meanwhile, another trader, Skew, placed $22,500 as the position needed for the bulls to return.
“22.5 thousand USD was a strong support and the price was consolidated for 19 days; this retracement level would be unreasonable for BTC,” It said in the change of the chart four hours.
“Otherwise, the failure will result in the price being determined and coordinated.”
DXY rise could lead to ‘financial crisis’
Meanwhile, US stocks took their turn, with the S&P 500 down 0.5% on the day.
Related: First Dead Cross of the Week – 5 Things to Know About Bitcoin This Week
The Nasdaq Composite edged 0.7% lower, while the U.S. Dollar Index (DXY) rose for the first time since Jan. 6. crossed the 104 mark, warning of a dangerous economy.
“I would still be careful here. Keeping things…both btc and eth below january. …dxy pushes up. I can’t be optimistic right now,” argued TraderSZ on the outlook for major crypto assets.
Meanwhile, investor Michael J. Kramer predicted the DXY rally of 106 with “solid economic conditions,” which could end up being the key to the defeat of the crypto recovery.
“DXY above 2022 despite the dollar holding the close of the day. Interesting …,” added Caleb Franzen, chief market analyst at Cubic Analytics.
