Why did Bitcoin price go down today? BTC traders brace for $23K retest

Bitcoin (BTC) headed toward $23,000 connected Feb. 3 aft a nighttime of losses erased bulls’ latest progress.

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

Dollar rebound halts crypto party

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $23,329 connected Bitstamp.

The brace had travel disconnected a 2nd travel supra the $24,000 people astatine the Feb. 2 Wall Street open, with buyers failing to prolong momentum amid macro marketplace volatility.

In classic style for involvement complaint announcements by the United States Federal Reserve, an archetypal determination was soon countered, with Bitcoin returning to its anterior position.

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

Conditions worsened acknowledgment to a rebound successful U.S. dollar strength, with the U.S. dollar scale (DXY) putting successful a conspicuous bounce, which it began to consolidate connected the day.

“Once the DXY Dollar finds enactment and begins to bounce hard, past we volition spot pullbacks connected our Crypto bags,” fashionable trader Crypto Tony warned.

“Time to wage attention.”

Cointelegraph contributor Michaël van de Poppe meantime eyed a level of 102 for DXY to spark inversely-correlated drops crossed hazard assets.

“I bash expect its apt DXY volition retest what was enactment and present overhead resistance,” Matthew Dixon, laminitis and CEO of crypto standing level Evai, continued successful his ain analysis.

“This would align with my inverse anticipation connected Btc and Crypto moving down a interaction earlier a last 'blowoff' precocious (not overmuch higher imo).”

U.S. dollar scale (DXY) annotated chart. Source: Matthew Dixon/ Twitter

CPI presents caller worry

Macro-induced terms unit could meantime linger done February, immoderate believe.

Related: Bitcoin bulls indispensable reclaim these 2 levels arsenic ‘death cross’ inactive looms

In its latest marketplace update sent to Telegram transmission subscribers, trading steadfast QCP Capital drew peculiar attraction to the adjacent U.S. Consumer Price Index (CPI) print, acceptable for merchandise connected Feb. 14.

“Post-FOMC, we person a heap of 2nd tier information releases including the important ISM services and NFP. However the decider volition beryllium the Valentine's Day CPI - and we deliberation determination are upside risks to that release,” it stated.

“Firstly, the Cleveland Fed's ostentation Nowcast is showing >0.6% people for Jan, adjacent if it has overstated ostentation the past fewer months.”

Thanks to a alteration successful the mode CPI is calibrated, QCP suspected that forthcoming numbers aboriginal successful 2023 could beryllium higher than the marketplace expects. Whether intelligence oregon not, the nett interaction could disappoint crypto bulls.

“In Europe, a akin reweight has led to a surge successful the January CPI released this week. Hence, we expect downside risks to materialize from present - either astatine this meeting, oregon aft the adjacent CPI release,” QCP added.

According to information from CME Group’s FedWatch Tool, meanwhile, statement remained steadfast implicit the adjacent complaint hike successful mid-March being identical to the February 1 astatine 25 ground points.

Fed people complaint probabilities chart. Source: CME Group

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