Bitcoin price hits $17,000 on US PPI as trader warns of ‘final capitulation’
Bitcoin (BTC) rose to $17,000 at the Wall Street open on November 15, as fresh economic data from the United States continued to show cooling inflation.
“Good” PPI increases risk assets
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it neared multi-day highs.
Volatility had returned an hour before the open when the US producer price index (PPI) came in below expectations.
Core PPI was unchanged month-on-month, with PPI picking up 0.2% against a 0.4% forecast. Year-on-year PPI was 8% against the 8.3% forecast.
The data, already in stark contrast to last month’s PPI, follows on from October’s consumer price index (CPI) last week, and this also shows that price increases in the US slowed.
A seemingly good sign for crypto along with risk assets, lower numbers theoretically increase the likelihood of an earlier pivot in hawkish economic policy from the Federal Reserve.
“Good CPI & Good PPI,” Michaël van de Poppe, founder and CEO of trading company Eight, reacted.
Others were more suspicious of the results in light of such aggressive quantitative easing (QT) measures.
“PPI is the inflation number the Fed uses to make decisions,” popular analyst Venturefounder wrote in part of the Twitter analysis.
“The market is rallying on the news, inflation may have peaked but I think the most alarming part is after record QT for almost a year, PPI is still at 8%.”
Stocks naturally appreciated the latest economic changes, with the S&P 500 and Nasdaq Composite Index up 1.7% and 2.4% respectively at the open.
The already precarious US dollar index (DXY), meanwhile, felt the pressure, briefly falling below 105.5 to its lowest levels since mid-August.
Bullish divergences face “final capitulation risk”.
For Bitcoin, optimism was still hard to find in analytical circles.
Related: Edward Snowden Says He Feels ‘Itch To Scale Back’ To $16.5K Bitcoin
Nevertheless, for trader and analyst Seth, a fresh bullish divergence on the weekly chart was something to feel confident about.
“Bears took credit for FTX Blackswan. Not many knew the second largest exchange was going bankrupt!” accompanying Twitter comments tired.
More expensive news came from fellow analyst Matthew Hyland, whose previous warning of a bearish chart crossover came true.
“The previous two crosses resulted in -46% and -57% moves AFTER the cross was confirmed,” he repeated about the three-day chart’s moving average convergence/divergence (MACD) indicator.
Il Capo from Crypto, is still looking at a deeper macro low, meanwhile added that “final capitulation is probable.”
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