Bitcoin (BTC) flashed volatility on January 6. Wall Street opened after fresh United States economic data disappointed risk-asset bulls.
Analyst: BTC price in line for $17,000 retest
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD dipping to $16,669 on Bitstamp around non-farm payrolls and unemployment figures.
Both were better than expected, with mixed implications for the Federal Reserve’s room to maneuver when tightening monetary policy.
There may be some potential relief for Bitcoin, crypto and the broader risk asset stage in the coming weeks and months, with interest rate hikes easing in intensity.
“Expecting $17k test,” On-chain analytics resource Material Indicator write was part of the reaction on social media.
The accompanying chart shows the BTC/USD order book on the largest global exchange Binance, with bids and liquidity rising higher.
Previously, Cointelegraph has reported in the country that the behavior of the book shows that it continues to range between $16,000 and $17,000 as a possibility.
“The market is ready for hot numbers after yesterday’s print, the shorts are unwinding after the impulse quickly fell,” popular commentator Tedtalksmacro added about non-farm payrolls.
But on unemployment, he is less positive, quarrel better-than-expected figures could prompt the Fed to resume a more restrictive approach.
“Nothing we want to see right now – unemployment lowers to a fixed point -> giving higher rates longer narrative,” he tweeted.
CPI bets favor the Fed’s pace of slackening
Beyond the US, inflation data from the European Union also boosted spirits, showing a downward trend in the Consumer Price Index (CPI).
Related: ‘Big move brewing’ for BTC price? Bitcoin may remain flat, analysts hint
“The Euro CPI came in at 9.2%, when 9.6% was forecast. This is down to 0.9% in the month, which means that inflation has cooled,” Michaël van de Poppe, founder and CEO of trading company Eight, the answer.
US CPI prints for December 2022 are due next week, with expectations for the next Fed rate hike now tilted to 25 basis points, according to CME Group FedWatch tool.
US stocks edged higher today, with the S&P 500 and Nasdaq Composite indexes gaining 1% and 0.6%, respectively.
The US dollar index (DXY) fell in step, The inverse correlation with crypto and stocks once again showed as it fell a full point to target 104.5 at the time of writing.
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