No policy changes from Japan’s central bank disrupted currency markets, but bitcoin led the trading sector to its highest level in two months.
At the very bottom
January 18 looks to be a potentially volatile day as many macros are starting to cloud the outlook.
BTC/USD Candlestick Chart 1 Hour (Bitstamp). Source: TradingView
The BoJ refuses to increase
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding above $21,000 for the day.
The pair remained calm on news from Japan, where the central bank, the Bank of Japan (BOJ), decided to keep policy very easy despite expectations of a rate hike.
In doing so, the Japanese yen and the US dollar took a hit in the latest chapter of a saga closely followed by crypto analysts.
“By leaving policy unchanged on key controls on interest rates and the yield curve at today’s meeting, the Bank of Japan probably wanted to send a message to the market; you are not fighting the BoJ,” ING Bank said in a voluntary response.
Cointelegraph contributor Michael van de Pop noted another drop in the US Dollar Index (DXY) following the news.
“DXY is going through another price test where it is starting to move lower, probably due to today’s BoJ announcements,” he concluded.
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In this situation, on January 16. the seven-month low reached was not corrected, and the DXY jumped to 101.9.
1 hour candlestick chart of the US Dollar Index (DXY). Source: TradingView
Van de Pop also pointed to the upcoming US data in the form of the producer price index (CPI) for 2022. December.
“We will have PPI and retail numbers in a few hours,” he added.
“And then others can move.”
BTC Whale Auction Raises Questions
Meanwhile, doubts about Binance’s order book activity remained in the Bitcoin market, as high-level traders reported increasing liquidity in offers.
Related: Bitcoin Hits New High After FTX As Analysis Warns Of ‘Choreographed’ Move
Material indicators and online analytical materials suggested that the entity could increase the offer, thus helping to increase BTC/USD in almost two months.
“I think the same whale would spend $4 million to put up $22 million and give them enough time to redeem the $22 million if they hit $4 million.” Just a theory. Time will tell,” said one of the many tweets on January 17.
However, a subsequent tweet expressed concern over “how long they can keep this up,” indicating that the corrective action could still affect Bitcoin.
BTC/USD order book data (Binance). Source: Material Indicators / Twitter
The last snapshot of the Binance order book showed the highest resistance at $22,000.
The views, opinions and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.