BTC price action targets $17,000 amid gently increasing volatility, with a week to go until U.S. inflation data.
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Bitcoin (BTC) ranged below $17,000 at the Dec. 8 Wall Street open as the U.S. dollar threatened further weakness.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Dollar dips as stocks see modest upt
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Data from Cointelegraph Markets Pro and TradingView showed BTC/USD practically flat over the 24 hours to the time of writing.
With macro cues lacking, analysts eyed a potential breakdown in U.S. dollar strength as the next volatility catalyst for crypto and risk assets.
The U.S. dollar index (DXY) looked set to challenge multi-day support, wicking below 105 multiple times on the day.
“$DXY’s first time under the 100 day MA since June of ‘21,” Joe Cariasare, co-host of the Inside Bitcoin podcast, noted.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
Trader and analyst Pierre added that both DXY and the S&P 500 could nonetheless trade sideways until the Consumer Price Index (CPI) print for November comes in on Dec. 13.
The event, as Cointelegraph reported, is a classic temporary volatility trigger.
“In the meantime, both SPX and DXY still hovering around their respective D1 200 EMA,” chart comments read.
“DXY flipping it resistance so far, while SPX sitting at D1 uptrend, important level to defend. Both looking like all they want is more and more chop until next week CPI.”
On BTC/USD, popular trader Daan Crypto Trades expected the trading range to expand a absorb liquidity both above and below spot.
“$BTC In a very tight range here with tons of untapped highs and lows,” he told Twitter followers.
“I think all these levels will get taken out and that the initial move will likely become a fakeout only to retrace and take the other side. Would definitely be a classic Bitcoin move.”
BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter
“Final phase” of the Bitcoin bear market?
Further modest tailwinds came from U.S. stocks during the first hour’s trading on Wall Street.
Related: GBTC ‘elevator to hell’ sees Bitcoin spot price approach 100% premium
The S&P 500 was up 1% at the time of writing, while the Nasdaq Composite Index was 1.2% higher. The move went some way to copying a day of relief in Asia, where trading ended with Hong Kong’s Hang Seng 3.4% higher.
Looking at longer timeframes, however, the picture remained downbeat on Bitcoin for many.
Popular commentator Byzantine General went on record to declare the likely beginning of the 2022 bear market’s darkest phase.
“Perps volume is in a pretty strong downtrend now. Market contracting, speculators capitulating,” he wrote, referring to perpetual futures markets.
“We’re probably entering the final phase of the bear. But that last phase can last pretty long.”
Data from Coinglass additionally showed open interest in futures continuing to decline.
Bitcoin futures open interest chart. Source: Coinglass
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Source: cointelegraph.com
