Bitcoin (BTC) has pared from resistance since the Wall Street open on November 29 as U.S. gross domestic product (GDP) numbers beat expectations.
GDP sets the tone for macro-sensitive cryptocurrencies
Data from Cointelegraph Markets Pro and TradingView followed a familiar BTC price retracement for a short period of time.
Bitcoin bulls had pushed the market above $38,000 the previous day, but hovered around that level before ultimately falling as US macro data took a hit.
This shows that third quarter GDP accelerated more than expected, 5.2% versus 4.9%.
This has renewed concerns about how the U.S. Federal Reserve will handle policy ahead of its interest rate decision in mid-December.
“5.2% is the final figure, which would mark the highest GDP growth since the fourth quarter of 2022”, financial commentary resource The Kobeissi Letter wrote This is part of the response to X (formerly Twitter).
“Can the Fed achieve a soft landing?”
Kobeissi quoted Bill Ackman, CEO and founder of the hedge fund Pershing Square Capital Management. He set a record the day before by predicting a Fed interest rate pivot in the first quarter of 2024.
“Yesterday Bill Ackman was betting on a hard landing with interest rate cuts starting in the first quarter. “Currently futures do not show a rate cut until June 2024,” he continued.
Data from CME Group’s FedWatch tool shows bets on further increases in December increased slightly following the GDP release, with further key data due to be released on November 30. The odds of a raise were 4.2% at the time of writing, compared to 0.5% previously.
Analyst: Bitcoin is a Buy Below $35,000
Meanwhile, Bitcoin continues to perform in a style that has been familiar from recent times.
Related: ‘Buy on the Rumors, Sell on the News’ — Bitcoin ETF Could Trigger TradFi Sell-Off
Despite some being convinced that an attack against $40,000 would ultimately occur, the Bulls still have not been able to break the key resistance area starting at $38,500.
Popular trader Skew noted that “higher highs” are needed for
$BTC 4 hours
There is no HH or breakout confirmation yet and we are considering a $37.3K area and HL setup for HH https://t.co/VDSl43g7Hh. pic.twitter.com/wwGTTegxlM— Skew Δ(@52kskew) November 29, 2023
Fellow trader Daan Crypto Trades suggested that a period of flatter BTC price performance may now begin before a new round of upward volatility occurs.
“It took away some liquidity from the top and the bottom,” he said of the day’s events.
“I wouldn’t be surprised to see both sides cutting laterally a bit more to build up more positions before the next bigger move.”
The attached chart shows liquidity for the BTC/USDT pair on Binance, the world’s largest exchange.
Michaël van de Poppe, founder and CEO of trading firm MN Trading, who is watching for potential downside opportunities, has already flagged a range between $33,000 and $35,000, a popular zone based on liquidity.
“The market is consolidating. Offers opportunity, but still no Bitcoin break above $38,000,” his latest X analysis read.
“If we continue to make higher lows and higher highs, I think a breakout will happen soon. Has the structure disappeared? Buy it for 330,000 to 350,000 won.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.