Bitcoin yo-yos on US macro data amid call for BTC price to retest $17,000

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Bitcoin (BTC) showed volatility at the open on Wall Street on January 6 after fresh economic data in the United States disappointed risk asset bulls.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewAnalyst: BTC price online for $17,000 retest

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD plunging to $16,669 on Bitstamp around non-farm payrolls and unemployment figures.

Both of these results were better than expected, with mixed implications for the Federal Reserve having some leeway when it comes to its continued tightening of monetary policy.

There could be some chance of relief for Bitcoin, crypto and the broader stage of risk assets in the weeks and months to come, with less and less intense interest rate hikes.

“I’m expecting a $17,000 test,” on-chain analytics resource Material Indicators wrote as part of a social media backlash.

An attached chart showed the BTC/USD order book on the world’s largest exchange Binance, with both buying and selling liquidity rising.

BTC/USD order book data (Binance). Source: Materials Indicators/Twitter

Previously, Cointelegraph reported on the state of the order book behavior, showing that the range between $16,000 and $17,000 was likely.

“The market was poised for a hot number after yesterday’s print, with the shorts unwinding after a rapid downward impulse,” popular commentator Tedtalksmacro added of the non-farm payrolls.

On unemployment, however, he was less positive, arguing that better-than-expected numbers could conversely encourage the Fed to pursue a more restrictive stance.

“Not what the bulls want to see right now – unemployment lowers the sticking point imo > fuels higher rates for a longer narrative,” he tweeted.

CPI bets favor a slower Fed pace

Looking beyond the United States, inflation data from the European Union also lifted sentiment, showing a downward trend in the consumer price index (CPI).

Related: Big brewing move for BTC price? Bitcoin Could Remain Stable, Analyst Says

“Euro CPI came in at 9.2%, down from 9.6% expected. It fell to 0.9% in a month, meaning inflation is slowing down,” Michal replied. van de Poppe, founder and CEO of trading company Eight.

The US CPI print for December 2022 is due next week, with expectations for the Fed’s subsequent rate hike currently skewed towards 25 basis points, according to CME Group’s FedWatch tool.

Fed Target Rate Probability Chart. Source: CME Group

US stocks edged higher during the day, with the S&P 500 and Nasdaq Composite indices gaining 1% and 0.6% respectively.

The US Dollar Index (DXY) fell at the same pace, its inverse correlation to crypto and stocks on display again as it fell a full point to hit 104.5 at the time of writing.

US Dollar Index (DXY) 1 hour candle chart. Source: Trading View

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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