Bitcoin (BTC) did not show much reaction at the Wall Street open on March 6 as speculation arose about a possible drop below $20,000.
$19,000 BTC price seen as a significant level
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD was stagnant around $22,400 at the time of this update.
Remaining inactive over the weekend, traders found limited opportunities as worries grew about the upcoming macroeconomic reports from the United States.
$BTC 4-Hour
Good luck trading this. pic.twitter.com/nc99kF8HbS
— The Wolf Of All Streets (@scottmelker) March 6, 2023
The Consumer Price Index (CPI) report for February, set to be released on March 14, is anticipated to be on the higher side, hinted Venturefounder, an analyst.
In a Twitter post, he mentioned, “With a hot CPI number coming and FOMC meeting later this month, March could be a bad month for risk-on assets including BTC. A breakdown from this level would target $19k BTC.”
This was supported by a chart illustrating a possible path below $20,000 and indicating a bearish divergence in Bitcoin’s relative strength index (RSI), i.e., when RSI and price move in opposite directions.
Though CPI reports usually trigger short-term fluctuations across risk assets, the impact is often brief, with Bitcoin price typically reverting to its previous levels.
Additionally, prominent trader Crypto Ed also suggested that $19,000 could serve as the next support level for BTC.
In another tweet, he mentioned his views on the potential price movements of Bitcoin and cautioned against being misled by lower timeframes.
U.S. Dollar Faces Key Resistance Test
Looking at broader market trends, trading resource Game of Trades highlighted the “significant resistance” faced by the U.S. dollar.
Historically, Bitcoin and the U.S. Dollar Index (DXY) have moved inversely, and the DXY was now approaching a crucial trend line test, as noted by Game of Trades.
The reaction at this point will be crucial for all markets, as specified by Game of Trades.
Another popular trader, Crypto Chase, observed a tight trading range on the S&P 500, resembling the lack of momentum in Bitcoin.
$ES
Currently utilizing the framework discussed in last night’s video. I’m allowing price to do whatever it wants around here.. let it deviate; you’re not missing anything.
A deviation of 4060.75 followed by a reclaim is one entry trigger (denoted by the down arrow on the chart).… https://t.co/LA3vCTFuWR pic.twitter.com/ItDw1cUgBb
— Crypto Chase (@Crypto_Chase) March 6, 2023
All eyes are set on Jerome Powell’s testimony before the U.S. Congress on March 7 as investors seek insights into future monetary policies.
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