Home » Bitcoin price hits $17K on US PPI as trader warns of ‘final capitulation’

Bitcoin price hits $17K on US PPI as trader warns of ‘final capitulation’

by admin

Bitcoin (Bitcoin) soared to $17,000 at the Wall Street open on November 15, with the latest US economic data continuing to point to lower inflation.

BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

‘Good’ PPI boosts risky assets

data from Cointelegraph Market Pro When TradingView It followed BTC/USD as it approached a multi-day high.

Volatility returned an hour before opening. U.S. Producer Price Index (PPI) It fell short of expectations.

Core PPI was unchanged month-on-month, with PPI overall up 0.2% and forecasts up 0.4%. Year-over-year his PPI was 8% against a forecast of 8.3%.

data already in sharp contrast Following last week’s October Consumer Price Index (CPI) and last month’s PPI, this also indicates a slowdown in price growth in the US.

On the surface, it bodes well for cryptocurrencies and risky assets, and in theory, the lower the numbers, the more likely an early pivot of hawkish economic policy by the Federal Reserve.

“Good CPI and good PPI,” said Michael van de Poppe, founder and CEO of trading company Eight. reacted.

In light of such aggressive quantitative tightening (QT) measures, others were more skeptical of the results.

“PPI is the inflation rate that the Fed uses in its decision-making,” said popular analyst Venturefounder. I have written Part of Twitter analytics.

“Markets may have rallied on the news and inflation may have peaked, but the most alarming part is that PPI is still hovering at 8% after almost a year of record QT. I think.”

US producer price index (PPI) chart.Source: Bureau of Labor Statistics

The S&P 500 and Nasdaq Composite Index opened up 1.7% and 2.4% respectively, with stocks rightly betting on the latest economic shifts.

Meanwhile, the already volatile U.S. Dollar Index (DXY) felt the pressure, dipping briefly below 105.5, its lowest level since mid-August.

US Dollar Index (DXY) 1-day candlestick chart.Source: Trading View

Bullish Divergence Addresses ‘Final Surrender’ Risk

Optimism has remained difficult to find in the analytical world for Bitcoin.

Related: Edward Snowden says he finds $16.5K bitcoin ‘hard to shrink’

Nonetheless, for trader and analyst Seth, the new bullish divergence on the weekly chart felt confident.

“Bears credits FTX Blackswan. Not many knew the second largest exchange was going bankrupt.” Accompanying Twitter comment said.

The dark news came from fellow analyst Matthew Hyland. previous warning A bearish chart cross has materialized.

“The previous two crosses resulted in -46% and -57% moves after the crosses were confirmed,” he said. repeated About the Moving Average Convergence Divergence (MACD) indicator on the 3-day chart.

BTC/USD annotated chart.Source: Matthew Hyland/Twitter

Meanwhile, Crypto’s Il Capo is still eyeing deeper macro lows. Added “Final surrender is likely,” he said.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.