Bitcoin price sees $23,000 despite dollar strength hitting 6-week high
Bitcoin (BTC) hit a nearly one-week high on February 15 as “extremely positive” economic data boosted sentiment for risk assets.
BTC price is aiming for $23,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD up 2.2% on the day to see a retracement of $23,000.
Analysts were already predicting volatility, and the latest economic figures from the US provided a pleasant surprise.
Retail sales and the Empire State Manufacturing Index both beat market expectations, showing a more robust economy despite restrictive Federal Reserve policies.
“Extremely positive numbers. Core retail sales and retail sales both smash expectations, while also the manufacturing index is more positive than expected,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading company Eight, reacted.
“The aid meeting will continue, it seems.“
The figures followed the consumer price index (CPI) for January, which came practically in line with expectations and gave only limited volatility as a result.
However, Bitcoin made a much bigger statement on the day, causing some to re-evaluate their short-term perspective on the market.
“I was clearly wrong today with my expectations for lower TF, expecting a bit of a correction first. As mentioned: a $22.3k callback is bullish for me and opens the way to 25k imo,” popular trader Crypto Ed acknowledged in sections of Twitter comments.
Fellow trader Skew, meanwhile, saw $22,500 as a key zone for bulls to recover next.
“$22.5K was strong support and price consolidated above for 19 days; regaining this level would be quite bullish for BTC,” an update on the 4-hour chart read.
“Otherwise failure will result in price testing of the breakout consolidation.”
DXY Rise May See ‘Tighter Economic Conditions’
US stocks were lagging at time of writing, with the S&P 500 still down 0.5% on the day.
Related: First Ever Weekly Death Cross – 5 Things to Know in Bitcoin This Week
The Nasdaq Composite Index rose 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 here. Keeping an open mind on things…both btc and eth under jan high still. …dxy pushing up. wouldn’t get too optimistic yet,” TraderSZ thus argued on the outlook for major cryptoassets.
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 crypto rebound.
“Despite all the severe stomping on the dollar, DXY is trading above the 2022 day’s close. Interesting…,” Caleb Franzen, senior market analyst at Cubic Analytics, added.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
