Bitcoin clings to $22K as US dollar strength rises to December levels — What's next?

Bitcoin (BTC) fell to three-week lows connected March 8 arsenic stronger-than-expected employment information from the United States dampened hazard assets.

BTC/USD 1-day candle illustration (Bitstamp). Source: TradingView

Employment stats boost Fed hawks, BTC terms dips

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $21,858 connected Bitstamp.

The brace was attempting to sphere $22,000 arsenic enactment astatine the clip of writing, with traders’ downside targets inactive a mode disconnected astatine $21,300.

“Bitcoin not showing the spot I initially wanted to spot (slight bounce yesterday taking place),” Cointelegraph contributor Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, summarized.

“In that case, looking for immoderate much downwards momentum towards a expanse of the lows astatine $21.2K earlier a bounce takes place. If we privation $30K, flip $23K is necessary.”

BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter

Fellow trading relationship Daan Crypto Trades meantime argued that volatility was owed acknowledgment to movements successful Bitcoin futures markets.

“Massive bid extent connected the Binance futures pair. Combined with rather the ramp up successful Open Interest,” helium revealed connected the day.

“Keep successful caput that walls tin beryllium deceptive wherever they tin beryllium pulled astatine immoderate moment. Feels similar a bigger determination is coming careless of direction.”

Macro events offered mixed results erstwhile it came to moving crypto markets.

An appearance by Jerome Powell, Chair of the Federal Reserve, earlier the U.S. Congress the time anterior failed to spark a reaction, but jobs information connected the time sent the temper downhill.

“The expectations were 197K successful employed people. The existent fig is 242K, which is much affirmative than expected,” Van de Poppe wrote successful portion of comments connected the day’s non-farm employment increases.

“For risk-on investors, not great, arsenic we've conscionable heard that Powell wants to summation involvement rates much successful 2023.”

Such “hot” employment figures traditionally unsettle hazard assets arsenic they connote that the Fed has much leeway to support fiscal conditions tighter for longer.

Dollar blasts 2 three-month highs

Estimates connected however acold the Fed would hike astatine the adjacent gathering of its Federal Open Market Committee (FOMC) connected March 22 evidenced the expanding uncertainty implicit declining inflation.

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Instead of 25 ground points arsenic successful February, the marketplace present favored a larger 50-basis-point complaint hike, according to information from CME Group's FedWatch Tool.

Fed people complaint probabilities chart. Source: CME Group

The U.S. dollar scale (DXY) likewise held a imaginable unwelcome astonishment successful store for Bitcoin bulls.

After a beardown league March 7, the Index consolidation connected the time aft hitting 105.88 — its highest levels since Dec. 1, 2022.

"Watch the DXY... there's a adjacent cleanable set-up for a negatively divergent higher precocious supra 106, past astatine slightest a large pullback, oregon the dump beneath 100 has begun," capitalist David Brady reacted.

U.S. dollar scale (DXY) 1-day candle chart. Source: TradingView

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.