Here’s what could spark a ‘huge BTC rally’ as Bitcoin clings to $19K

As markets waited for tech earnings, Bitcoin (BTC), fell with US equities at Wall Street’s Oct. 19 open.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Inflation in the Eurozone at an all-time high

Cointelegraph Markets Pro and TradingView data showed that BTC/USD was at $19,000, after having fallen 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 increased. Similar results were seen in the eurozone, where September’s annual inflation reached 10.9% — the highest recorded.

“The annual euro area inflation rate was 9.9% as of September 2022, an increase from 9.1% in August. The rate was 3.4% a year earlier,” Eurostat stated.

“European Union annual inflation was 10.9% September 2022, 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).

Chart showing the annual inflation rates for Eurozone (screenshot). Source: Eurostat
nalyst 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.

Related: Bitcoin mirrors 2020 before-breakout but analysts aren’t sure if this is different

U.S. dollar index (DXY), 1-hour candle chart Source: TradingView

Kevin Svenson, a market analyst, made bold predictions for the dollar the day before, predicting that Bitcoin would experience explosive growth if the DXY 2022 “parabola,” collapses.

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. Source: Kevin Svenson/ Twittercom. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/here-s-what-could-spark-a-huge-btc-rally-as-bitcoin-clings-to-19k

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