As markets await tech earnings, Bitcoin ( BTC ) fell with US equities during the Oct. 19, Wall Street Open.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Inflation in the Eurozone at an all-time high
Data from Cointelegraph Markets Pro, and tradingView showed that BTC/USD was at $19,000 after falling steadily over the overnight.
The pair was still stuck in a narrow range and offered no cues for traders looking to make short-term gains. However, some sources claimed that current levels were solid buy levels.
“With few calendar events until the next FOMC early November, crypto continuing lag behind equities and skews close flat, protective downside mechanisms are the cheapest levels that they have been since June,” QCP Capital, a trading firm, stated to Telegram channel subscribers.
QCP Capital was referring specifically to the U.S. Federal Reserve’s Federal Open Market Committee meeting, where a decision would be made on interest rate increases.
These numbers could cause volatility in risk assets, as the U.S. is more influential in crypto markets than any other nation when it comes to inflation.
The United Kingdom saw a 40-year-old high in year-on–year inflation. It reached 10.1% on September 1st as food prices took their toll. Similar results were seen in the eurozone, where September’s annual inflation reached 10.9% — the highest recorded.
“Inflation in the euro area was 9.9% in September 2022. This is an increase from 9.1% in August. A year earlier, the rate was 3.4%,” a statement from Eurostat confirmed.
“The European Union’s annual inflation rate was 10.9% in September 2022. This is an increase of 10.1% from August. The rate was 3.6% a year earlier. These numbers are published by Eurostat (the statistical office of European Union).
Eurozone annual inflation rates chart (screenshot). Source: Eurostat
Analyst eyes dollar parabola break
The Japanese yen was also on track to reach the psychologically significant 150-per-dollar level.
The U.S. dollar Index (DXY), which aims to reach 113 within an overall consolidation structure, climbed on Tuesday.
Similar: Pre-breakout of 2020, but analysts disagree on whether this time is different
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
A day earlier, Kevin Svenson, a market analyst, made bold predictions for the dollar, suggesting that Bitcoin would experience explosive growth if the DXY2022 “parabola,” is finally broken down.
He summarized, “The $DXY will soon break below the parabola folks.”
“If it does, a massive BTC rally will likely occur.”
U.S. dollar index (DXY) chart with parabola lines shown. Source: Kevin Svenson/ Twitter
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.
