1 year ago
Bitcoin (BTC) held momentum astatine $38,000 connected Nov. 29 arsenic investigation warned implicit marketplace corrections.
BTC/USD 1-hour chart. Source: TradingViewBitcoin meets macro data, Fed's Powell astatine cardinal terms point
Data from Cointelegraph Markets Pro and TradingView showed BTC terms trajectory continuing to purpose for caller 18-month highs.
After matching existent highs the time prior, the largest cryptocurrency amazed by keeping a grip connected higher levels arsenic futures markets deed $39,000.
Already a taxable of debate, the excitement connected derivatives led immoderate to caution that large-volume traders could inactive permission precocious agelong positions stranded astatine the top.
In commentary overnight, Keith Alan, co-founder of monitoring assets Material Indicators, told traders to beryllium wary of these “whale games.”
“Earlier today, immoderate inquire liquidity astatine $38k was pulled to unfastened the doorway to $38.5k. Don't let yourself to deliberation that was a affable whale giving you boost. That was a Killer Whale trying to FOMO you in,” helium wrote astir the archetypal travel past $38,000.
Alan continued that words owed Dec. 1 from Jerome Powell, Chair of the United States Federal Reserve, whitethorn supply an outer BTC terms catalyst which could adjacent bring $40,000 into play.
Whales, however, would beryllium spying a cardinal level astatine which to merchantability off.
“My presumption is that they volition proceed to bash truthful until determination is capable to dump into,” helium forecast.
“That doesn't mean that #JPow's code can't beryllium the catalyst that sends terms past $40k, particularly arsenic we spot bid liquidity coming successful supra $37.5k, but if you aren't prepared to expanse the section lows betwixt present and past you haven't been paying attraction to however these Whale Games thin to play out.”
BTC/USDT bid publication liquidity. Source: Keith Alan/XAn accompanying illustration showed bid publication sell-side liquidity concentrated astatine $38,500 — a level yet to beryllium challenged astatine the clip of writing.
Others remained assured that further short-term upside was imaginable and adjacent likely.
Analyzing existent marketplace composition, fashionable trader Skew concluded that measurement was each that was missing for a breakout toward the $40,000 watershed.
— Skew Δ (@52kskew) November 29, 2023Ackman bets connected Q1 Fed complaint cut
As Cointelegraph reported, anterior to Powell’s speech, cardinal U.S. macro information volition lend other value to Fed policy.
Related: Bitcoin metric that ‘looks into future’ eyes $48K BTC terms astir ETF
This comes successful the signifier of Q3 GDP and the October people of the Personal Consumption Expenditures (PCE) Index connected Nov. 29 and Nov. 30, respectively.
Previously, ostentation abating faster than expectations led markets to presume that nary further involvement complaint hikes would hap astatine the December gathering of the Federal Open Market Committee (FOMC).
Speaking to Bloomberg connected Nov. 28, Bill Ackman, CEO and laminitis of hedge money Pershing Square Capital Management, stated that the Fed mightiness person nary prime but to pivot connected rates astatine the commencement of 2024.
“I deliberation they’re going to chopped rates; I deliberation they’re going to chopped rates sooner than radical expect,” helium said.
Ackman continued that not cutting rates “pretty soon” would summation the hazard of a alleged hard landing for the U.S. system arsenic ostentation tails off.
“I deliberation the marketplace expects sometime successful the mediate of adjacent year; I deliberation it’s much likely, probably, arsenic aboriginal arsenic Q1,” helium predicted.
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