Bitcoin (BTC) hit its highest level in almost a week on Feb. 15 as “extremely positive” economic data boosted sentiment in risk assets.
BTC Price Targets $23,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD gained 2.2% on the day to see a recovery of $23,000.
Analysts were already forecasting volatility, with the latest US economic figures providing a pleasant surprise.
Retail sales and the Empire State Manufacturing Index beat market expectations, showing a more resilient economy despite the Federal Reserve’s tightening policy.
“Extremely positive numbers. Core Retail Sales and Retail Sales exceed expectations, while the Manufacturing Index is also more positive than expected,” Michaël van de Poppe, Cointelegraph Contributor, Founder and CEO of trading firm Eight , reacted.
“The relief rally will continue, as it seems.“
The figures followed the Consumer Price Index (CPI) for January, which was broadly in line with expectations and provided only limited volatility as a result.
However, Bitcoin made a much bigger statement that day, causing some to reconsider their short-term outlook on the market.
“Today I was clearly wrong with my expectations on a lower TF, hoping for some correction first. As mentioned: a rally to $22.3k is bullish for me and leads the way to 25k imo,” popular Crypto trader Ed admitted in part from Twitter comments.
Meanwhile, fellow trader Skew saw $22,500 as an important zone for the bulls to claim next.
“$22.5K was strong support and price has been consolidating above it for 19 days, claiming this level would be quite bullish for BTC,” an update on the 4-hour chart. read.
“Otherwise, failure will result in price testing breakout consolidation.”
DXY surge may see “tighter financial conditions”
Meanwhile, US stocks were biding their time as of this writing, with the S&P 500 still down 0.5% on the day.
Related: First Weekly Death Cross: 5 Things To Know About Bitcoin This Week
The Nasdaq Composite Index gained a modest 0.7% while the closely watched US Dollar Index (DXY) crossed the 104 mark for the first time since January 6 in a warning to risk-on assets.
“I’d still be cautious around here. Keep an open mind on things… both btc and eth still below jan high yet. … dxy pushing up. Still wouldn’t be too bullish,” TraderSZ said. argument on the prospects of the main crypto assets.
Meanwhile, investor Michael J. Kramer predicted a trip to 106 for DXY, along with “tighter financial conditions” in what could end up being a recipe for crypto bounce defeat.
$dxy trying to break out, the next stop could be 106 and tighter financial conditions along with it. pic.twitter.com/pQNRzbhsW4
—Michael J. Kramer (@MichaelMOTTCM) February 15, 2023
“Despite all the serious dollar trampling, the DXY is trading above the 2022 daily close. Interesting…” Caleb Franzen, Senior Market Analyst at Cubic Analytics, aggregate.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
