Will Bitcoin price crack $22K? Dollar weakness, Bank of Japan easing boost hopes

Bitcoin (BTC) faced a perchance volatile time connected Jan. 18 arsenic aggregate macro triggers began to unsettle the outlook.

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

BoJ refuses to hike

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steadfast supra $21,000 connected the day.

The brace remained chill amid quality from Japan, wherever the cardinal bank, the Bank of Japan (BoJ) had decided to support ultra-easy argumentation successful place, defying expectations of an involvement complaint hike.

In truthful doing, some the yen and U.S. dollar took a hit, the latest section successful a saga being keenly watched by crypto commentators.

"In keeping its cardinal complaint and output curve power argumentation unchanged astatine today's meeting, the Bank of Japan astir apt wanted to convey a connection to the market; don't combat the BoJ," ING reacted successful a dedicated effect piece.

Cointelegraph contributor Michaël van de Poppe focused connected a caller diminution successful the U.S. dollar scale (DXY) pursuing the news.

“Another bearish retest taking spot connected the DXY, successful which this 1 starts to driblet substantially, possibly adjacent owed to the announcements from the BoJ earlier today,” helium summarized.

In the event, DXY bounced astatine 101.9, not rather retesting the seven-month lows achieved connected Jan. 16.

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

Van de Poppe besides noted upcoming information owed from the U.S. aboriginal successful the signifier of the Producer Price Index (PPI) for December 2022.

“In a fewer hours we'll get PPI numbers and Retail Sales,” helium added.

“Might beryllium immoderate moving astir after.”

BTC whale bidding raises questions

On Bitcoin markets, meanwhile, suspicion continued to swirl astir enactment connected the Binance bid publication arsenic large-volume traders posted much and much bid liquidity.

Related: Bitcoin hits caller post-FTX precocious arsenic investigation warns determination ‘choreographed’

On-chain analytics assets Material Indicators argued that a azygous entity was perchance moving bids higher, helping buoy BTC/USD astatine two-month highs.

“Speculating that it could beryllium the aforesaid whale utilizing the $4M to insulate their $22M and springiness capable clip to rug the $22M if the $4M gets hit. Just a theory. Time volition tell,” 1 of aggregate Twitter posts connected Jan. 17 stated.

A consequent tweet nevertheless voiced concern implicit “how agelong they tin support this up,” implying a corrective determination could inactive contiguous connected Bitcoin.

BTC/USD bid publication information (Binance). Source: Material Indicators/ Twitter

The latest snapshot of the Binance bid publication showed the strongest absorption clustered astatine $22,000.

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