Bitcoin price eyes $23K despite US dollar strength hitting 6-week high
The U.S. Dollar Index (DXY) is gaining ground more rapidly than Bitcoin after fresh economic data surprises from Washington.
Bitcoin (BTC) hit its highest in almost a week on Feb. 15 as “extremely positive” economic data boosted risk asset sentiment.
BTC’s price aims for $23,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining 2.2% on the day to eye a reclaim of $23,000.
Analysts were already predicting volatility, with the latest economic numbers from the United States delivering a pleasant surprise.
Retail sales and the Empire State Manufacturing Index both surpassed market expectations, showing a more resilient economy despite restrictive policy at the Federal Reserve.
“Extremely positive numbers. Core Retail Sales and Retail Sales both smash expectations, while also Manufacturing Index more positive than expected,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“The relief rally will continue, as it seems.”
The figures followed the Consumer Price Index (CPI) print for January, which came practically in line with expectations and provided only limited volatility as a result.
Bitcoin made a much bigger statement on the day, however, causing some to rethink their short-term perspective on the market.
“I was cleary wrong today with my expectations on lower TF, expecting some correction first. As mentioned: a reclaim of $22,3k is bullish to me and opens the road to 25k imo,” popular trader Crypto Ed acknowledged in part of Twitter comments.
Fellow trader Skew, meanwhile, eyed $22,500 as an important zone for bulls to reclaim next.
“$22.5K was strong support & price consolidated above for 19days; reclaiming this level would be pretty bullish for BTC,” an update on the four-hour chart read.
“Else failure will result in price testing the breakout consolidation.”
DXY surge may see “tighter financial conditions”
U.S. equities were biding their time at the time of writing, meanwhile, with the S&P 500 still down 0.5% on the day.
Related: First weekly death cross ever — 5 things to know in Bitcoin this week
The Nasdaq Composite Index gained a modest 0.7%, while the much-watched U.S. Dollar Index (DXY) crossed the 104 mark for the first time since Jan. 6 in a warning to risk assets.
“I’d still be cautious around here. Keeping open mind of things…both btc and eth below jan high still. …dxy pushing up. wouldn’t get too optimistic just yet,” TraderSZ thus argued about the outlook for major crypto assets.
Investor Michael J. Kramer, meanwhile, predicted a trip to 106 for DXY, along with “tighter financial conditions” in what could end up a recipe for defeat for the crypto rebound.
$dxy trying to break out, next stop could be 106 and tighter financial conditions along with it. pic.twitter.com/pQNRzbhsW4
— Michael J. Kramer (@MichaelMOTTCM) February 15, 2023
“For all the grave stomping on the dollar, the DXY is trading above the 2022 daily close. Interesting…,” Caleb Franzen, senior market analyst at Cubic Analytics, added.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
