Bitcoin (BTC) hit $39,000 on December 1 for the first time since mid-2022 as the U.S. Federal Reserve (Fed) raised hopes of policy easing.
Powell: It would be “premature” to call the hike over
Data from Cointelegraph Markets Pro and TradingView confirms a new 19-month BTC price high of $39,000 on Bitstamp.
Bitcoin bulls, already in a strong position, defied resistance as Federal Reserve Chairman Jerome Powell took the stage at Spelman College in Atlanta, Georgia for a scheduled appearance.
“The FOMC is committed to reducing inflation to 2% over time and maintaining policy limits until we are confident that inflation is at target,” he said in a prepared speech.
“It is premature to confidently conclude that we have achieved a sufficiently restrictive stance or to speculate when policies may be relaxed.”
Chairman Powell maintained a cautious tone, but seemed to increase sentiment toward risky assets with remarks about the current state of the U.S. economy and the direction of reducing inflation.
The Kobeissi Letter, a reactive financial commentary piece, was one of the more sobering accounts of what the Fed might do in the future.
“Their story has not changed since last year, but markets continue to call for a Fed pivot.” wrote Part of an X (formerly Twitter) post.
“As we have said before, the Fed would prefer to trigger a mild recession rather than risk a resurgence in inflation. “This means there is still a chance of a long pause.”
Nonetheless, Bitcoin made the most of the mood, in contrast to the flat reaction to US macro data releases earlier this week.
As Cointelegraph reported, the next meeting of the Federal Open Market Committee (FOMC) is scheduled to be held in mid-December, when interest rate changes will be announced. As of December 1, market expectations favor a unilateral pause on increases, according to data from the CME Group FedWatch tool.
BTC price target extends above $39,000.
Popular trader Daan Crypto Trades has turned to the Bitcoin market, revealing the amount of sell-side liquidity involved in its brief trip to $39,000.
Related: ‘Buy on the Rumors, Sell on the News’ — Bitcoin ETF Could Trigger TradFi Sell-Off
#Bitcoin It literally took me 2 minutes ✅ https://t.co/JOwOVA3U4S pic.twitter.com/ii8CCoMchW
— Daan Cryptocurrency Trading (@DaanCrypto) December 1, 2023
Meanwhile, Keith Alan, co-founder of trading resource Material Indicators Uploaded Snapshot of BTC/USDT order book liquidity for X following Powell’s speech.
This shows that $39,000 and $39,200 remain significant resistance overheads, while the nearest real buyer support is at $38,000.
“I firmly believe we will finally close above $38,000 today. A daily close above $38,000 is a strong signal that it is a candle from God.” Fellow Popular Trader BitQuant prediction Early that day.
Daan cryptocurrency trading Added While Bitcoin appears to be “outside its previous trading range for the time being,” Crypto Ed, founder of trading and education group CryptoTA, said: predicted We recommend pushing Bitcoin to “at least” $39,200.
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.