BTC price cools down after latest US data

Bitcoin (BTC) It headed back towards $24,000 when Wall Street opened on February 16 after the latest macroeconomic data from the United States beat estimates.

Latest US PPI data shakes markets

Data showed that Bitcoin gave back some of its recent gains, trading at around $24,800 on Bitstamp at the time of writing.

The BTC/USD pair hit a local high of $25,134, the highest level in six months, before the surprise increase seemed to catch many traders off guard.

In the two days leading up to February 16, $80 million in short positions were liquidated on Bitcoin alone, with $65 million coming in on February 15 – the most in a single day since January 20.

Some of the excitement was erased by the latest Producer Price Index (PPI) data for January, which showed prices rising more than expected year-over-year. The S&P 500 and Nasdaq Composite Index were down 1.1% at the time of writing.

A source for investment research Game of Trades also notedthat unemployment data fell below the expected 200,000 claims for this week.

Markets were shaken by US PPI data. US PPI for January was hot (hotter than CPI a few days ago), with 0.7 % MoM vs 0.4 % expected, PPI YoY at 6 % vs. 5.4 % expected. Core US PPI also disappointed with 0.6 % MoM vs. 0.2 % expected, 4.5 % YoY vs. 4 % expected.

Markets rattled by hot US PPI data. US PPI for Jan was hot (hotter than the CPI from a few days ago), w/headline +0.7% MoM vs +0.4%, PPI YoY at 6% vs 5.4% expected. Core US PPI disappointed as well w/+0.6% MoM vs +0.2% expected, 4.5% YoY vs 4% expected. pic.twitter.com/IE7SWvcM8Q

— Holger Zschaepitz (@Schuldensuehner) February 16, 2023

Along with falling stocks, the US Dollar Index (DXY) showed renewed strength, climbing above 104.1 to its highest levels since the first week of the year.

Meanwhile, Bitcoin has been facing its own key moving averages in the form of the 50-week and 200-week trend lines, which have just printed their first-ever death cross as a warning to bulls.

However, according to analyst Michaël van de Poppe, the death cross only occurs based on historical price events. He wrote to his Twitter followers on February 15.

The whole bear market of last year is finally coming to an end. The best thing to do with something like this is to go long instead of short.

Fellow trader Crypto Tony summed up the mood among more conservative market participants. In an update after the recent local highs, he argued that much depends on Bitcoin's behavior around $25,000.

My main target on this 5th wave is $25,000 as that is also the previous untapped swing high, he explained with the attached chart.

From here, we will better understand whether we are truly in a flat bearish correction, or whether this is the start of something more interesting.

Do not miss: WHERE TO BUY BITCOIN AND CRYPTOMEN

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.