Bitcoin takes liquidity near $17K as US dollar shows weakness pre-CPI

Bitcoin (BTC) ranged beneath $17,000 astatine the Dec. 8 Wall Street unfastened arsenic the U.S. dollar threatened further weakness.

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

Dollar dips arsenic stocks spot humble upt

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD practically level implicit the 24 hours to the clip of writing.

With macro cues lacking, analysts eyed a imaginable breakdown successful U.S. dollar spot arsenic the adjacent volatility catalyst for crypto and hazard assets.

The U.S. dollar scale (DXY) looked acceptable to situation multi-day support, wicking beneath 105 aggregate times connected the day.

“$DXY’s archetypal clip nether the 100 time MA since June of ‘21,” Joe Cariasare, co-host of the Inside Bitcoin podcast, noted.

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

Trader and expert Pierre added that some DXY and the S&P 500 could nevertheless commercialized sideways until the Consumer Price Index (CPI) people for November comes successful connected Dec. 13.

The event, arsenic Cointelegraph reported, is simply a classical impermanent volatility trigger.

“In the meantime, some SPX and DXY inactive hovering astir their respective D1 200 EMA,” illustration comments read.

“DXY flipping it absorption truthful far, portion SPX sitting astatine D1 uptrend, important level to defend. Both looking similar each they privation is much and much chop until adjacent week CPI.”

On BTC/USD, fashionable trader Daan Crypto Trades expected the trading scope to grow a sorb liquidity some supra and beneath spot.

“$BTC In a precise choky scope present with tons of untapped highs and lows,” helium told Twitter followers.

“I deliberation each these levels volition get taken retired and that the archetypal determination volition apt go a fakeout lone to retrace and instrumentality the different side. Would decidedly beryllium a classical Bitcoin move.”

BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter

"Final phase" of the Bitcoin carnivore market?

Further humble tailwinds came from U.S. stocks during the archetypal hour's trading connected Wall Street.

Related: GBTC 'elevator to hell' sees Bitcoin spot terms attack 100% premium

The S&P 500 was up 1% astatine the clip of writing, portion the Nasdaq Composite Index was 1.2% higher. The determination went immoderate mode to copying a time of alleviation successful Asia, wherever trading ended with Hong Kong's Hang Seng 3.4% higher.

Looking astatine longer timeframes, however, the representation remained downbeat connected Bitcoin for many.

Popular commentator Byzantine General went connected grounds to state the apt opening of the 2022 carnivore market's darkest phase.

"Perps measurement is successful a beauteous beardown downtrend now. Market contracting, speculators capitulating," helium wrote, referring to perpetual futures markets.

"We're astir apt entering the last signifier of the bear. But that past signifier tin past beauteous long."

Data from Coinglass additionally showed unfastened involvement successful futures continuing to decline.

Bitcoin futures unfastened involvement chart. Source: Coinglass

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