Bitcoin (BTC) showed volatility at the Wall Street open on Jan. 6 after fresh US economic data disappointed risk-asset bulls.
Analyst: BTC Price Online for $17,000 Retest
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair fell to $16,669 on Bitstamp around non-farm payrolls and unemployment figures.
Both numbers were better than expected, with mixed implications for the Federal Reserve’s room for maneuver in regards to its continued tightening of monetary policy.
There may be some chance of relief for Bitcoin, cryptocurrencies and the broader risk asset landscape in the coming weeks and months, with interest rate hikes fading in intensity.
“Waiting for a proof of USD 17,000”, wrote on-chain analysis resource Material Indicators in part of a social media backlash.
An accompanying chart presented the order book for the BTC/USD pair on the world’s largest exchange, Binance, with both buying and selling liquidity increasing.
Previously, Cointelegraph had reported on the state of order book performance showing a continued range between $16,000 and $17,000 as likely.
Tedtalksmacro, a popular commentator, added on non-farm payrolls: “Market was ready for a good number after yesterday’s print, shorts pulled back after a quick push lower.”
On unemployment, however, he was less positive, arguing that better-than-expected numbers could instead embolden the Fed to continue with a tighter approach.
“Not what the bulls want to see right now: Unemployment decline is the sticking point, fueling higher rates for longer,” he tweeted.
CPI bets favor Fed easing
Beyond the US, inflation data from the European Union also boosted morale, showing a downward trend in the Consumer Price Index (CPI).
“The CPI in euros stands at 9.2%, while it was expected to be 9.6%. This represents a decrease of 0.9% in one month, which means that inflation is cooling off,” answered Michaël van de Poppe, founder and CEO of the trading company Eight.
The December 2022 US CPI is due to be released next week, and Fed rate hike expectations are currently leaning towards 25 basis points, according to CME Group’s FedWatch Tool.
US stocks were up a bit more on the day, with the S&P 500 and Nasdaq Composite Index gaining 1% and 0.6%, respectively.
The US dollar index (DXY) fell at the same rate. Its inverse correlation with cryptocurrencies and stocks was on display again as it fell a full point to target 104.5 at press time.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.