The US dollar may finally be poised to go lower as the euro zone says September’s annual inflation was the highest on record.
Bitcoin
BTC
to mark
$19,772
fell with US stocks at the open on Wall Street on October 19 as markets awaited tech gains.
BTC/USD 1-hour candlestick (bit stamp). Source: TradingView
Eurozone sees new historically high inflation
Data from Cointelegraph Markets Pro and TradingView show that BTC/USD is hovering around $19,000 after falling steadily overnight.
Still stuck in a tight range, the pair offered some clues for traders looking for near-term upside plays, with some sources arguing that overall current levels represent solid buy levels.
“With little events on the calendar until the next FOMC in early November, cryptocurrency stocks continue to laugh and lean almost flat, protective structures to the downside are the lowest they have been since June,” the report concluded. Trading company QCP Capital to subscribers of the Telegram channel during the day.
QCP Capital refers to the upcoming meeting of the US Federal Reserve Federal Open Market Committee, where a decision on interest rate increases will be made.
These numbers could create volatility and risk assets, as the US has more influence on the crypto markets than other nations when it comes to inflation.
The UK reported a new 40-year high in year-on-year inflation that day, hitting 10.1% as food prices took their toll. The Eurozone told a similar story, with annual inflation reaching 10.9% in September, the highest ever recorded.
“The annual rate of inflation in the Eurozone was 9.9% in September 2022, compared to 9.1% in August. A year earlier, the rate was 3.4%,” confirmed a statement from Eurostat.
“The annual inflation of the European Union was 10.9% in September 2022, compared to 10.1% in August. A year earlier the rate was 3.6%. These figures are given by Eurostat, the statistical office of the European Union published.
Eurozone annual inflation rate chart (screenshot). Source: Eurostat
Analyst looks at the breakout of the dollar parabola
On the other hand, the Japanese yen was on track to reach the psychologically significant level of 150 per dollar.
The US Dollar Index (DXY) was higher on the day, looking to break 113 within a general consolidation structure.
Related: Bitcoin Mirrors Previous 2020 Breakout, But Analysts Disagree If This Time Is Different
1 hour candlestick chart of the US Dollar Index (DXY). Source: TradingView
The day before, market analyst Kevin Svenson made a bold prediction for the dollar, arguing that Bitcoin would see explosive growth if the DXY 2022 “parabola” were to break forever.
“$DXY is about to break under the Parabola crowd,” he summed up.
“If it happens, a big BTC rally is possible.”
US Dollar Index (DXY) chart with parabolic lines displayed. Source: Kevin Svenson/Twitter
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