Monday, 20 March 2023

Crypto News

Bitcoin price returns to $22K despite ‘least volatile’ US CPI reaction

Bitcoin price returns to $22K despite 'least volatile' US CPI reaction

Bitcoin (BTC) ticked above $22,000 after the Feb. 14 Wall Street open as crucial United States inflation data delivered “mixed” results.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

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 timeframes before reversing upward.

The pair saw flash volatility in line with predictions as January’s Consumer Price Index (CPI) numbers hit, something repeated at the start of trading on Wall Street.

Still within a tight trading range, however, Bitcoin’s reaction was in fact fairly muted, with up and down moves only involving several hundred dollars at a time.

That reflected the CPI data itself, which broadly conformed to market expectations. A moderate exception was year-on-year, which ran “hot” at 0.2% above the envisaged 6.2%.

“US inflation mixed,” markets commentator Holger Zschaepitz wrote in part of a social media reaction.

Crypto circles also noted the lack of panic, which accompanied crypto markets’ reaction.

“This looks to be one of the least volatile market reactions to US CPI since 2022,” Investment research resource Game of Trades commented.

With few cues coming from macro, Bitcoin traders thus looked to potential range highs and lows to determine future short-term price action.

“Tight daily range at the moment,” Crypto Chase summarized alongside an explanatory chart.

“I think we eventually interact with both red box and liquidity below. I’d be watching for shorts from red box and for longs after sweeping 20.3K liquidity.”

BTC/USD annotated chart. Source: Crypto Chase/ Twitter

Fellow trader Skew added that whales had reduced long BTC exposure following the print.

Prior to that, monitoring resource Material Indicators had revealed whales setting up what it likened to a trap for retail investors.

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