Bitcoin Traders Look at Bottom of $19K BTC Price, Warn of ‘Hot’ February KPI
Bitcoin (BTC) failed to react at the March 6 Wall Street open as a potential breach of $20,000 was agreed upon.
$19,000 BTC Price Is ‘Breakdown Target’
Data from Cointelegraph Markets Pro and TradingView tracked a limp BTC/USD as it held at $22,400 at the time of writing.
Unmoved over the weekend, the pair provided few trading opportunities as concerns built over the impact of upcoming US macroeconomic data.
Specifically, the February printout of the consumer price index (CPI), due on March 14, is expected to be “hot” or above expectations, analyst Venturefounder said.
“New Bitcoin higher low, and the bearish RSI divergence continues,” he wrote in a Twitter update a day.
“With a hot CPI figure coming and FOMC meeting later this month, March could be a bad month for risk assets including BTC. A break from this level would target $19k BTC.”
An accompanying chart laid out the potential path below $20,000 and also highlighted the bearish divergence in Bitcoin’s Relative Strength Index (RSI), formed when the metric’s path goes in the opposite direction of price — down versus up, respectively.
CPI prints tend to trigger short-term volatility across risk assets, however this is often short-lived and the Bitcoin spot price then returns to previous levels.
Still, popular trader Crypto Ed also expressed his belief of $19,000 marking the next local BTC price floor.
“Biggest bulltrap ever, but the bottom is in. Enjoy the coming months and don’t be fooled by the lower TFs!” part of the Twitter comment read.
US dollar sets up key test
Turning to macro markets, trading resource Game of Trades drew attention to what it called “heavy resistance” to US dollar strength.
Related: BTC price ‘in the chop zone’ – 5 things to know in Bitcoin this week
Traditionally inversely correlated with Bitcoin, the US Dollar Index (DXY) now faced another key trendline test.
“DXY Approaches Heavy Resistance Zone After Regaining Macro Uptrend Line,” Game of Trades wrote.
“The reaction here will be central to all markets.”
Popular trader Crypto Chase, meanwhile, saw a tight trading range in place on the S&P 500, which mimics the lack of momentum on Bitcoin.
Attention was already on the March 7 appearance before the US Congress by Jerome Powell, chairman of the Federal Reserve, for clues about the monetary conditions ahead.
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.
