Will Bitcoin worth crack $22K? Greenback weak spot, Financial institution of Japan easing increase hopes

Bitcoin (BTC) confronted a probably risky day on Jan. 18, with a number of macro triggers starting to unsettle the outlook.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

BoJ refuses to hike

Information from Cointelegraph Markets Professional and TradingView confirmed BTC/USD holding agency above $21,000 on the day.

The pair remained cool amid information from Japan, the place the central financial institution — the Financial institution of Japan (BoJ) — had determined to maintain an ultra-easy coverage in place, defying expectations of an rate of interest hike.

In so doing, each the yen and U.S. greenback took a success, the most recent chapter in a saga being keenly watched by crypto commentators.

“In retaining its key fee and yield curve management coverage unchanged at immediately’s assembly, the Financial institution of Japan in all probability wished to convey a message to the market; do not combat the BoJ,” ING reacted in a devoted response piece.

Cointelegraph contributor Michaël van de Poppe centered on a recent decline within the U.S. greenback index (DXY) following the information.

“One other bearish retest happening on the DXY, during which this one begins to drop considerably, perhaps even because of the bulletins from the BoJ earlier immediately,” he summarized.

Within the occasion, DXY bounced at 101.9, not fairly retesting the seven-month lows achieved on Jan. 16.

U.S. greenback index (DXY) 1-hour candle chart. Supply: TradingView

Van de Poppe additionally famous upcoming information due from the U.S. later within the type of the Producer Value Index (PPI) for December 2022.

“In a couple of hours we’ll get PPI numbers and Retail Gross sales,” he added.

“Is perhaps some shifting round after.”

BTC whale bidding raises questions

On Bitcoin markets, in the meantime, suspicion continued to swirl round exercise on the Binance order e book as large-volume merchants posted increasingly bid liquidity.

Associated: Bitcoin hits new post-FTX excessive as evaluation warns transfer ‘choreographed’

On-chain analytics useful resource Materials Indicators argued {that a} single entity was probably shifting bids increased, serving to buoy BTC/USD at two-month highs.

“Speculating that it may very well be the identical whale utilizing the $4M to insulate their $22M and provides sufficient time to rug the $22M if the $4M will get hit. Only a idea. Time will inform,” one in all a number of Twitter posts on Jan. 17 said.

A subsequent tweet nonetheless voiced concern over “how lengthy they’ll maintain this up,” implying a corrective transfer may nonetheless current on Bitcoin.

BTC/USD order e book information (Binance). Supply: Materials Indicators/ Twitter

The most recent snapshot of the Binance order e book confirmed the strongest resistance clustered at $22,000.

The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially mirror or characterize the views and opinions of Cointelegraph.