• Bitcoin price flashed volatility at the Jan. 6 Wall Street open after fresh United States economic data disappointed risk-asset bulls.
• Analyst suggest that BTC price is in line for $17,000 retest
• Mixed implications for the Federal Reserve suggest that there may be some chance of relief for Bitcoin, crypto and the broader risk asset stage in the weeks and months to come.
It was a rollercoaster day on the markets for Bitcoin (BTC) on Jan. 6, as the U.S. dollar dropped to favor Bitcoin bulls. As the Wall Street open approached, BTC/USD saw a hint of price volatility in response to fresh United States economic data.
The non-farm payrolls and unemployment figures came in better than expected, which had mixed implications for the Federal Reserve. This could mean that there is room for the central bank to continue tightening its monetary policy, although there may be some chance of relief for Bitcoin, crypto and the broader risk asset stage in the weeks and months to come.
On-chain analytics resource Material Indicators suggested that the BTC/USD order book on largest global exchange Binance showed both bid and ask liquidity inching higher. They also commented that they expected a test of $17,000.
Most analysts remained optimistic about Bitcoin’s prospects, with many believing that the cryptocurrency is still in a good position to make further gains in the near future. Some even predicted that Bitcoin could hit $20,000 this year if the U.S. dollar continues to weaken.
With the U.S. dollar weakening, it could be that Bitcoin will be able to benefit from the situation. If the U.S. dollar continues to weaken, then it could be that the cryptocurrency will see even more gains in the near future.
It remains to be seen how the markets will react to the news, but it is clear that the U.S. dollar will have an important role to play in determining the future of Bitcoin. With the U.S. dollar dropping to favor Bitcoin bulls, it is possible that the cryptocurrency could retest its all-time highs in 2021.