Bitcoin price returns to $22K despite ‘least volatile’ US CPI reaction
Bitcoin (BTC) ticked above $22,000 after Wall Street opened on February 14, as key US inflation data produced “mixed” results.
BTC price hits 5-day highs on CPI
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it tested multi-week lows twice on hourly time frames before reversing higher.
The pair saw flash volatility in line with predictions when January’s consumer price index (CPI) numbers hit, which was repeated at the start of trading on Wall Street.
Still within a tight trading range, however, Bitcoin’s reaction was actually quite muted, with ups and downs involving only several hundred dollars at a time.
It reflected the CPI data itself, which largely matched market expectations. A moderate exception was year-on-year, which was “hot” by 0.2% above the predicted 6.2%.
“US inflation mixed,” market commentator Holger Zschaepitz wrote as part of a reaction to social media.
Crypto circles also noted the lack of panic, which followed the crypto markets’ reaction.
“This looks to be one of the least volatile market reactions to US CPI since 2022,” Investment Resource Game of Trades commented.
With few cues from macro, Bitcoin traders therefore looked to potential highs and lows to determine future short-term price action.
“Tight daily range at the moment,” Crypto Chase in summary next to an explanatory diagram.
“I think we will eventually interact with both red box and liquidity below. I would look for shorts from red box and long after seeking 20.3k liquidity.”
Fellow trader Skew added that whales had reduced long BTC exposure after the print.
Prior to that, monitoring resource material indicators had revealed whales setting up something that compared to a trap for retail investors.
DXY forms continuous focus
As for stocks, the S&P 500 and the Nasdaq Composite index both opened flat, with a correspondingly weak response to the CPI.
Related: First Ever Weekly Death Cross – 5 Things to Know in Bitcoin This Week
The US dollar index (DXY), a strong focus for some in the run-up to a week of macro data releases, briefly rose above 103.5 before returning to the base.
“I said keep an eye on DXY. It almost hit the green box and bounced. In case it starts moving higher, bearish for crypto imo,” popular trader Crypto Ed wrote in part of his latest Twitter updates.
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.
