US Dollar Index (DXY) gains faster than Bitcoin after new economic data surprises from Washington.
Bitcoin
BTC
ticking down
$23,334
hit its worst in nearly a week on Feb. 15 as “very positive” economic data raised risks to asset sentiment.
The price of BTC has a target of $23
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose 2.2% on the day to see a rally at $23,000.
Analysts have already predicted volatility, with economic figures from the US bringing a pleasant surprise.
Retail sales and the Empire State Manufacturing Index both exceeded market expectations, indicating a stable economy despite restrictive Federal Reserve policy.
“The numbers are very good. Core retail sales and retail sales both beat expectations, while the manufacturing index is better than expected,” said Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight.
“The charity meeting continues as it seems.”
The figures followed the release of the consumer price index (CPI) for January, which was in line with expectations and showed little change as a result.
However, Bitcoin made a huge statement on the day, causing some to rethink their short-term view of the market.
“I was wrong today with my expectations on the low TF, I hope to be corrected first. As mentioned before: return of $22.3k to me and opens the way for 25k imo,” admitted the well-known trader Crypto Ed in the comments section on Twitter .
However, Trader Skew sees $22,500 as a key point for the bulls to retake.
“$22.5K was a strong support and price consolidation over 19 days; retracement of this level would be good for BTC,” read an update on the 4-hour chart.
“Other failures will cause the price to try to consolidate.”
DXY Rise Could See “Stronger Economic Conditions”
US stocks found their time at the time of writing, but the S&P 500 was still down 0.5% on the day.
Related: First Ever Weekly Dead Cross – 5 Things to Know in Bitcoin This Week
The Nasdaq Composite Index rose slightly less than 0.7%, while the US Dollar Index (DXY) looked more focused, crossing the 104 mark for the first time since Jan. 6, which has been warned of dangerous real estate.
“I’m still cautious here. Keeping an open mind about things…both btc and eth under jan high quiet. …dxy pushing up. won’t be too bullish right now,” TraderSZ argued on the outlook for major crypto issues.
Investor Michael J. Kramer, meanwhile, predicted a trip to 106 for the DXY, as well as a “tighter financial situation” that could result in an immediate defeat due to the crypto rebound.
“For all the digs the dollar is stepping on, DXY is trading above 2022 every day. That’s interesting …,” added Caleb Franzen, chief market analyst at Cubic Analytics.
