The consumer price index is at its lowest level since the beginning of 2022
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising to daily highs of $17,782 on Bitstamp.

The pair was just hours away from a more than two-year low below $15,700 at the time, which lifted it over a 24-hour period from a low to a high of 12.8%.

At the time of writing, BTC/USD is hovering around $17,400 with volatility still rampant as US markets open up to digest economic data.

This came in the form of the printed Consumer Price Index (CPI) for October, along with jobless claims.

Both provided a positive surprise, with CPI coming in below expectations and Jobless Claims above, both suggesting that a rate hike by the Federal Reserve was working and that the pivot could come sooner than expected.

Analyzing Bitcoin’s reaction to Binance’s order history, the resource’s Material Indices Monitor showed the nearest resistance hurdle at $18,500.

“The bear market rally is still alive,” read part of the accompanying comment.

BTC/USD order book data chart (Binance). Source: Material Indicators / Twitter
IncomeSharks trading account was more optimistic, arguing that $20,000 could be returned as part of the risky asset recovery.

“Bitcoin – has an easy path back to $20k as stocks push higher and positive CPI numbers,” she told her Twitter followers.

At 7.7% year-on-year, the CPI reading for October was the lowest since January, an accompanying news release confirmed.

The index of all non-food items and energy rose by 6.3 percent over the past 12 months. The energy index increased by 17.6 percent for the 12 months ending in October, and the food index increased by 10.9 percent from a year ago; All of these increases were lower than in the period ending in September.

US Consumer Price Index (CPI) chart. Source: Bureau of Labor Statistics
DXY tanks 2% on the economic numbers
Meanwhile, the already weak US Dollar Index (DXY) felt immediate pain on the release, falling more than 2% for the second time in recent days.

Related: Analysts Urge Calm As Tether Unwinds From USD, Bitcoin Losses $17K

The DXY index hovered around 108.6 at the time of writing, its lowest level since September 13th.

US Dollar Index (DXY) candlestick chart. Source: TradingView
Meanwhile, stocks opened significantly higher, with the S&P 500 up 3.5%, and the Nasdaq Composite up 4.6%.

However, the famous analyst John Wick, like many others, advised caution.

“Dollar is pulling back from the upward channel due to CPI numbers. This gives relief to assets,” he tweeted along with a DXY chart.

“Just because an upward channel has been broken does not mean that a sustained downtrend will always occur. Another channel will often form at a slower approval rate, or it may jump back to the original channel.”

Source: CoinTelegraph