Bitcoin (BTC) is heading towards $20,000 as US stocks rose at the Oct. 17 Wall Street opening.
Stocks go up as the dollar head goes down
Cointelegraph Markets Pro and TradingView BTC/USD reaches $19,672 on Bitstamp, up 3.5% from the weekend low.
The pair rose in line with the stocks, with the S&P 500 and Nasdaq Composite Index gaining 2.7% and 3.2% respectively within 30 minutes of trading.
The action was combined with weaker US economic data in the form of the Empire State Manufacturing Index, which fell to -9.1 in October, well below forecasts of -4.3 and September’s reading of -1.5. .
‘Manufacturing activity fell in New York state, according to October survey,’ says New York Fed wrap up in the data comments.
“The general economic index fell 8 points to -9.1. Twenty-three percent of respondents reported that conditions had improved over the month, while 32% reported that conditions had deteriorated.”
In response, Michael van de Poppe, founder and CEO of trading firm Eight, said the results were “much worse than expected.”
“Top of yields and $DXY on the horizon. Bitcoin rally,” he said predicted.
This sent the US Dollar Index (DXY) down 0.65% with a target of 112, continuing to reverse its recent gains for the day.
“Risk asset deflation in 2022 and the Fed’s tightening despite the world tipping into recession are elusive,” said Mike McGlone, senior commodity strategist at Bloomberg Intelligence. It’s a harbinger of the impending doomsday,” he said. I have written While summarizing fresh macro analysis.
“Lower commodity prices may be needed to contain Fed restraint and money supply plummeting. Cooling oil may fuel bitcoin and gold.”
Research strengthens impending volatility
Traders Already Predicted Some Easing By Hitting The Crypto Markets In The Weekly Timeframe, But Other Views repeated Long term, the fact that Bitcoin hasn’t changed much in months.
RELATED: ‘Getting Ready’ for BTC Volatility — 5 Things You Need to Know About Bitcoin This Week
“It is extremely rare for the BTC market to reach periods of such low realized volatility, with almost all previous instances preceding highly volatile moves,” said on-chain analytics firm Glassnode. I’m here. Indicated In the latest edition of our weekly newsletter The Week On-Chain.
Alongside Bitcoin’s realized volatility chart, researchers, including lead analyst Checkmate, claimed the market had reached a critical point.
“Historical examples of one-week rolling volatility below the current 28% in a bear market precede significant price movements in both directions,” they continued.
In conclusion, Glassnode concludes that despite the potential price breakout fuel being there, for example BTC futures open interest hitting new all-time highs, “the futures market has little discernible directional bias. I admitted that I didn’t.
“Volatility is likely on the horizon and bitcoin prices are not known to be static for very long,” the newsletter said.
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