January 28, 2023

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Bitcoin Drops Below $16,700 And Risks New Price Deathmatch As US GDP Gains Dollar Strength

On December 22nd Wall Street Open Bitcoin (bitcoin), as well as US stocks, erasing previous gains.

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

Bitcoin risks a new and unprecedented ‘death cross’

data Cointelegraph Markets Pro And the TradingView BTC/USD fell to an intraday low of $16,650 on Bitstamp.

The pair continued to track stocks, with the S&P 500 opening 1.6% lower and the Nasdaq Composite down 1.8% at the time of writing.

The weakness appears to be a reaction to stronger-than-expected US GDP growth in the third quarter, and data released before the opening.

While this is a sign of recovery, concerns center around whether the Fed will continue its hawkish policy, assuming the economy can withstand such measures.

In theory, this could be done through long-term interest rate increases, With analysts already claim How unlikely a “axes” in politics until at least 2024.

accordingly, Risky assets received no relief from the GDP newsMore disappointing for traders who were hoping for a Christmas rally.

“A clear bearish retest. The downtrend remains unchanged.”And the comment Head of Crypto, Trader and Analyst, on the daily chart of the S&P 500 Index.

Crypto Chief He had warned earlier in the week That were not the markets in general “get ready” about the new losses that would have occurred.

Even regarding Bitcoin, the mood of some pundits is decidedly bearish.

encryption bleeding highlighted a “death cross” Never seen before including the 50-day and 200-day exponential moving averages (EMA).

Hanging chart for BTC/USD. Source: Bleeding Crypto / Twitter

Meanwhile, Daan Crypto Trades drew attention to the annual shutdown, which likely marks the third negative year ever for bitcoin.

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“The percentage loss for this year between the two other negative years, which are 2014 and 2018”And the confirmed.

Hanging chart for BTC/USD. Source: Daan Crypto Trades / Twitter

Elsewhere, analyst Tony Guinea also expressed a little optimism about the bitcoin bulls, Arguing that the lower macro will not appear before the first quarter of 2023.

“Capturing at 11-14K. Bottoming in Q1 2023. Expect final downward movement soon.”And the is reading in a tweet.

Hanging chart for BTC/USD. Source: Toni Ghinea / Twitter

The dollar is trying to recover after the GDP news

The main beneficiary of the GDP news was the US dollarwhich recorded a clear recovery in strength.

Related: Bitcoin Low Volume Alerts of Possible Price Movement, While Related Gauge Reaches ‘Value Zone’

The US Dollar Index (DXY) is trading at 104.5 at the time of writing, up from a pre-opening low of 103.75.

the “Green Goldfinch” Thus, I recovered the losses that I caused The sudden intervention of the Bank of Japan at the beginning of the week.

US Dollar Index (DXY) 1-hour chart. Source: TradingView

The views, ideas and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.