7.5 C
New York
Wednesday, March 22, 2023

Will Bitcoin value crack $22K? Dollar weak point, Bank of Japan easing increase hopes

Bitcoin (BTC) confronted a probably unstable day on Jan. 18, with a number of macro triggers starting to unsettle the outlook.

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

BoJ refuses to hike

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD holding agency above $21,000 on the day.

The pair remained cool amid information from Japan, the place the central financial institution — the Bank of Japan (BoJ) — had determined to maintain an ultra-easy coverage in place, defying expectations of an rate of interest hike.

In doing so, each the Japanese yen and the United States greenback took a success within the newest chapter of a saga carefully watched by crypto commentators.

“In keeping its key rate and yield curve control policy unchanged at today’s meeting, the Bank of Japan probably wanted to convey a message to the market; don’t fight the BoJ,“ ING Bank said in a dedicated response piece.

Cointelegraph contributor Michaël van de Poppe focused on a fresh decline in the U.S. Dollar Index (DXY) following the news.

“Another bearish retest taking place on the DXY, in which this one starts to drop substantially, maybe even due to the announcements from the BoJ earlier today,” he summarized.

In the occasion, DXY bounced at 101.9, not fairly retesting the seven-month lows achieved on Jan. 16.

U.S. Dollar Index (DXY) 1-hour candle chart. Source: TradingView

Van de Poppe additionally famous upcoming information from the U.S. within the type of the Producer Price Index (PPI) for December 2022.

“In a few hours we’ll get PPI numbers and Retail Sales,” he added.

“Might be some moving around after.”

BTC whale bidding raises questions

On Bitcoin markets, in the meantime, suspicion continued to swirl round exercise on the Binance order e-book as large-volume merchants posted increasingly more bid liquidity.

Related: Bitcoin hits new post-FTX excessive as evaluation warns transfer ‘choreographed’

On-chain analytics useful resource, Material Indicators argued {that a} single entity was probably transferring bids larger, serving to buoy BTC/USD at two-month highs.

“Speculating that it could be the same whale using the $4M to insulate their $22M and give enough time to rug the $22M if the $4M gets hit. Just a theory. Time will tell,” certainly one of a number of Twitter posts on Jan. 17 acknowledged.

A subsequent tweet nonetheless voiced concern over “how long they can keep this up,” implying a corrective transfer may nonetheless hit Bitcoin.

BTC/USD order e-book information (Binance). Source: Material Indicators/ Twitter

The newest snapshot of the Binance order e-book confirmed the strongest resistance clustered at $22,000.

The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially mirror or symbolize the views and opinions of Cointelegraph.