Bitcoin price deviates from $25,000 with questions about inflation coupled with a recovering US dollar.
Bitcoins
BTC
stripes down
$27,080
trended toward $24,000 at the February 16 Wall Street open after fresh U.S. macroeconomic data topped estimates.
Hot PPI data in the US will “shake” the markets
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD has retreated from some of its recent highs during the day, trading around $24,400 on Bitstamp at the time of writing.
The pair hit $24,895 on Bitstamp overnight, hitting a six-month high as a surprise rally surprised many traders.
In the two days to February 16, $80 million in short positions were liquidated on Bitcoin alone, and $65 million appeared on February 15 — the most in a single day since 8 p.m. from January
The US Producer Price Index (PPI) Print for January dampened some excitement about risk assets, however, as it showed wholesale prices rose more than expected on a year-over-year basis.
The S&P 500 and Nasdaq Composite indexes are down 1.1% as of this writing.
“Some signs of economic weakness in today’s macro data,” wrote Game of Trades, an investment research source, in part of the reaction on Twitter, while noting that jobless figures fell below the expected 200,000 applications for the week.
As stocks fell, the US Dollar Index (DXY) regained strength, climbing above 104.1 to its highest level since the first week of the year.
“Continuing to go perfectly as expected, so far we see a break and reversal of the D1 downtrend, eyes on the D1 200 EMA in the 104.5-104.7 area as discussed in recent weeks,” wrote popular trader Pierre.
What is in the cross of death
Meanwhile, Bitcoin faced its own moving averages in the form of 50-week and 200-week trend lines, which just printed their first “death cross” as a warning to the bulls.
Related: Why is the price of Bitcoin rising today?
For Cointelegraph contributor Michaël van de Poppe, however, there was reason not to pay too much attention to the phenomenon after the 2022 bear market.
“The Death Cross is based only on historical prices,” he told Twitter followers on February 15.
“The whole bear market of the past year has finally entered this cross. The best you can do about it is to go too long instead of too short.”
Another trader, Crypto Tony, summed up the sentiment among more conservative market participants.
In an update after recent local highs, he argued that much depends on Bitcoin’s behavior around $25,000.
“My main target for this fifth wave is $25,000 because this is also the previous untouched swing high,” he explained next to the chart.
“From here we will better understand if we are indeed in a flat bearish correction or if this is the start of something more exciting.”
