Bitcoin (BTC) hit its highest level in nearly a week on Feb. 15 as “extremely positive” economic data boosted sentiment for risk assets.
BTC price points to USD 23,000
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was up 2.2% on the day, reaching $23,000.
Analysts were already predicting volatility, and the latest US economic figures came as a pleasant surprise.
Both retail sales and the Empire State Manufacturing Index beat market expectations, showing a more resilient economy despite the Federal Reserve’s tighter policy.
“Extremely positive numbers. Both Core Retail Sales and Retail Sales have exceeded expectations, while the Manufacturing Index has been more positive than expected,” he claimed Michaël van de Poppe, a Cointelegraph contributor and founder and CEO of the trading company; Eight.
“From the looks of it, the relief rally will continue.”
These numbers followed January’s Consumer Price Index (CPI) figures, which were mostly in line with expectations and caused only limited volatility.
However, Bitcoin was much more noticeable on the day, causing some to rethink their short-term outlook on the market.
“I was clearly wrong today with my expectations for a lower bottom on short time frames, expecting some correction first. As mentioned: a rally to $22,300 is bullish for me and opens the way to $25,000.” acknowledged popular Crypto trader Ed in part of the Twitter comments.
His colleague Skew, for his part, was targeting $22,500 as an important area for bulls to recapture next.
“$22.5K was strong support and the price was consolidating above it for 19 days, recovering this level would be quite bullish for BTC,” it read. read on a four-hour candlestick chart update.
“Otherwise, the price will either go back to the breakout level or see a consolidation.”
DXY rise could translate into “tightening economic conditions”
For its part, the US stock market was waiting for its moment at press time, with the S&P 500 losing 0.5% on the day.
The Nasdaq Composite Index gained a modest 0.7%, while the US Dollar Index (DXY), crossed the 104-point barrier for the first time since January 6, in a warning to risk assets.
“I would continue to be cautious here. Keep an open mind on things…both BTC and ETH are still below the January high. […] DXY up. I wouldn’t be too optimistic at the moment.” argument TraderSZ on the prospects of the main crypto assets.
Investor Michael J. Kramer, meanwhile, predicted a trip to 106 for the DXY, along with “tighter economic conditions” in what could end up being a recipe for defeat for the cryptocurrency 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
“Despite all the big dollar stomps, the DXY is trading above the 2022 daily close. Interesting…”, added Caleb Franzen, a senior market analyst at Cubic Analytics.
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