The stock market is falling, and bitcoin is growing along with the dollar – this happens, although quite rarely. At such moments, you want to think of cryptocurrency as a defensive asset, but let’s better turn to the facts.
According to the Cryptocurrency Screener Cryptovizorwhich determines the market price of BTC/USD based on the results of trading on the largest spot exchanges, the asset updated a 6-month high today and reached $25,275.
The growth of the cryptocurrency occurred despite the latest data on the US economy:
- the consumer price index (CPI) turned out to be higher than expected and reached 6.4%;
- producer price index (PPI) also exceeded expectations (0.7% instead of 0.4%);
- Philadelphia Fed Manufacturing Index turned out to be worse expected value (-24.3 vs. expected -7.4).
Against this backdrop, it looks perfectly logical that the main stock indexes S&P 500 (SPX) and Nasdaq Composite fell by 1.1%, while the US dollar index (DXY) showed strength, rising above 104.1. It would seem that all this should have weakened Bitcoin, but, as you can see, the reality is just the opposite.
What was happening woke up a rocket in the head of the head of the trading firm Eight Michael van de Poppe (Michaël van de Poppe), and he wrote on twitter:
We will break through $25 thousand and fly towards $30-35 thousand per bitcoin.
“But what about the bearish death cross on the weekly chart?” You ask, and you will be right. All traders see that the asset is now at the level of the main weekly moving averages.
Crypto analyst Tony became the spokesman for the views of more conservative market participants. He declaredwhich considers $25,000 to be the target of the 5th Elliott wave – also, at this level is the previous untested high (apparently from August 15, 2022) – and added:
This point will allow us to understand if we are in a flat bearish correction, or if this is the beginning of something more promising.
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