Here’s What Could Trigger A ‘Major BTC Rally’ As Bitcoin Clings To $19K
Bitcoin (BTC) fell with U.S. stocks at the Wall Street open on Oct. 19 as markets awaited tech earnings.
The eurozone sees new record high inflation
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circulating $19,000 after falling steadily overnight.
Still trapped in a tight range, the pair gave few signals to traders looking for beneficial short-term plays, while some sources claimed current levels overall represented solid buying levels.
“With little calendar events until the next FOMC in early November, crypto continues to lag stocks, and biases near flat, protective downside structures are the cheapest levels they have been since June,” trading firm QCP Capital concluded to Telegram channel subscribers. day.
QCP Capital referred to the upcoming meeting of the US central bank’s Federal Open Market Committee, where a decision on interest rate increases was to be made.
These numbers would be apt to trigger volatility in risky assets, with the US more influential in crypto markets than other nations when it comes to inflation.
The UK reported a new forty-year high in year-on-year inflation on the day, reaching 10.1% as food prices took their toll. The Eurozone told a similar story, with annual inflation at 10.9% in September – the highest ever recorded.
“The euro area annual inflation rate was 9.9% in September 2022, up from 9.1% in August. A year earlier the rate was 3.4%,” a statement from Eurostat confirmed.
“EU annual inflation was 10.9% in September 2022, up from 10.1% in August. A year earlier, the rate was 3.6%. These figures are published by Eurostat, the EU’s statistical office.”
Analyst looks at dollar parabola break
Elsewhere, the Japanese yen was on course to reach the psychologically significant level of 150 per dollar.
The US dollar index (DXY) climbed on the day, attempting to break 113 within an overall consolidation structure.
Related: Bitcoin Mirrors 2020 Pre-Breakout, But Analysts Differ If This Time Is Different
The day before, market analyst Kevin Svenson had done one bold prediction for the dollar, arguing that Bitcoin would see explosive growth if the DXY 2022 “parabola” breaks down definitively.
“$DXY is about to break below the parabola folks,” he summed up.
“If that happens, a big BTC rally is likely to happen.”
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