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

cointelegraph.com:

Bitcoin (BTC) headed toward $23,000 on Feb. 3 after a night of losses erased bulls’ latest progress.

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

The pair had come off a second trip above the $24,000 mark at the Feb. 2 Wall Street open, with buyers failing to sustain momentum amid macro market volatility.

In classic style for interest rate announcements by the United States Federal Reserve, an initial move was soon countered, with Bitcoin returning to its prior position.

Conditions worsened thanks to a rebound in U.S. dollar strength, with the U.S. dollar index (DXY) putting in a conspicuous bounce, which it began to consolidate on the day.

“Once the DXY Dollar finds support and begins to bounce hard, then we will see pullbacks on our Crypto bags,” popular trader Crypto Tony warned.

Cointelegraph contributor Michaël van de Poppe meanwhile eyed a level of 102 for DXY to spark inversely-correlated drops across risk assets.

“I do expect its likely DXY will retest what was support and now overhead resistance,” Matthew Dixon, founder and CEO of crypto rating platform Evai, continued in his own analysis.

Macro-induced price pressure could meanwhile linger through February, some believe.

Related: Bitcoin bulls must reclaim these 2 levels as ‘death cross’ still looms

In its latest market update sent to Telegram channel subscribers, trading firm QCP Capital drew particular attention to the next U.S. Consumer Price Index (CPI) print, set for release on Feb. 14.

“Post-FOMC, we have a heap of 2nd tier data releases including the important ISM services and NFP. However the decider will be the Valentine's Day CPI - and we think there are upside risks to that release,” it stated.

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