For the second week in a row, bitcoin has risen in price against the US dollar. The two-week growth was more than 20%. The growth of quotations was facilitated by the general weakening of the dollar in the global currency market and the recovery of US stock indices at the end of the week.
The BTC/USDt pair has been trading sideways for several days below the level of 39 thousand. On February 2, following the Nasdaq index, the bitcoin rate fell to $36,250. Since February 3, the recovery has continued against the backdrop of a sharp fall in the dollar index.
Traders were actively selling the dollar after the meetings of the ECB and the Bank of England. The British rose in price after the decision of the Bank of England to raise the interest rate to 0.5% from 0.25%. The euro strengthened after the speech of the head of the ECB, Carl Lagarde, and two reports from news agencies. Reuters and Bloomberg said ECB officials also expect a policy change in March if inflation does not come down.
Previously, speculators bet on the dollar because of the divergence of monetary policy between the world's central banks. Now other banks are starting to raise rates, making the dollar less attractive.
On Friday, February 4, the bitcoin/dollar pair broke through the resistance of 39 thousand, ignoring the dollar rally, which was caused by the publication of strong data on the US labor market for January. The S&P 500 and Nasdaq indexes fell at the moment.
The bitcoin rate has confidently broken through the downward trend line drawn at the highs of November and December. Sellers began to close short positions, and buyers opened long positions in anticipation of further price recovery.
As soon as market participants digested the published statistics on the labor market, stock indices turned up. Support for sentiment on the last trading day of the week was an increase in the price of Amazon shares by 15.0%. The strong earnings of Snapchat and Pinterest saw their stocks rise more than 60% and 12%, respectively, adding to the tailwind for a broader recovery in tech stocks.
From Monday, the focus of traders will be directed to the speeches of the heads of central banks and the inflation report in the US. High inflation and sled control measures remain key themes for all markets.
After rising by 11% and breaking the trend line, buyers have a great chance to push the price up to $44,500. American companies with large capitalization have reported, so if stock indices do not begin to sag in the new trading week, then the price may go down to 49 thousand (SMA200).
On Monday, February 7, the BTC/USDt pair rose to 43,000 amid rising futures for US stock indices. In the first half of the week, buyers have time to raise the rate to 45 thousand. Then market participants will begin to prepare for the publication of the inflation report in the US, which is scheduled for Thursday (16:30 GMT+3). Preparation can be calm, or it can change the mood in the market.