Bitcoin price nears $20,000 as 'much worse' US data boosts stocks

Bitcoin price nears $20,000 as ‘much worse’ US data boosts stocks

Bitcoin (BTC) headed towards $20,000 as US stocks rallied on October 17 on Wall Street.

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

Stocks rise as the US dollar heads lower

Data from Cointelegraph Markets Pro and TradingView BTC/USD showed up to $19,672 on Bitstamp, up 3.5% against its weekend lows.

The pair rose in line with stocks, with the S&P 500 and Nasdaq Composite up 2.7% and 3.2%, respectively, within thirty minutes of trading.

The move was combined with weak US economic data in the form of the Empire State Manufacturing Index, which fell to -9.1 for October, well below expectations of -4.3 and September’s reading of -1.5.

“Manufacturing activity down in New York state, according to October survey” Federal Reserve of New York Summarization In the comments on the data.

The general working conditions index fell eight points to -9.1. Twenty-three percent of respondents reported that conditions had improved during the month, and 32 percent reported that conditions had worsened.”

In response, Michael van de Poppe, founder and CEO of Trading Eight, described the results as “much worse than expected.”

“Top in Revenue and DXY Dollars on the Horizon. Bitcoin to Rise,” is expect.

With that, the US Dollar Index (DXY) continued correcting its latest gains on the day, targeting 112 and down 0.65%.

“A shrinkage of risky assets in 2022 and a Fed tightening despite the world’s tilt toward a recession portend a distant end,” Mike McGlone, chief commodity strategist at Bloomberg Intelligence, said. Wrote summarizing the new macro analysis.

“Low-rate treatment may be necessary in commodities to limit Fed restraint and dwindling money supply. Cooling crude oil could refuel bitcoin and gold.”

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

Research boosts impending volatility

While traders were already anticipating some relief from hitting the cryptocurrency markets on the weekly time frames, other perspectives repeat The fact that in the long run, nothing has changed for Bitcoin for several months.

Related: ‘Get ready’ for Bitcoin volatility – 5 things to know in Bitcoin this week

“It is very uncommon for BTC markets to reach periods of low achieved volatility, where almost all previous instances are preceded by a highly volatile move,” chain analytics firm Glassnode show up In the latest edition of her weekly newsletter, The Week On-Chain.

Besides charting Bitcoin’s realized volatility, researchers including lead analyst Checkmate argue that the market has reached a pivotal point.

They continued, “Historical examples with 1-week gradual fluctuations below the current value of 28% in a bear market have preceded significant price movements in both directions.”

Bitcoin 1 week volatility chart (screenshot). Source: Glassnode

In conclusion, Glassnode acknowledged that while there was fuel for a potential price breakout, for example in the all-time highs in BTC-denominated futures, there was “a bit of clear directional bias in the futures markets.”

“Volatility is likely on the horizon, and it is not known that bitcoin prices will remain flat for a very long time,” the newsletter stated.

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