Bitcoin (BTC) maintained momentum at $38,000 on November 29 as analysis warned of a market correction.
Bitcoin Meets Macro Data, Fed Powell at Key Price Ranges
Data from Cointelegraph Markets Pro and TradingView shows that the BTC price trajectory continues to aim for a new 18-month high.
The largest cryptocurrency surprised by holding higher as futures markets touched $39,000 after hitting current highs the previous day.
Excitement over derivatives, which has already become the subject of controversy, has led some to warn that large traders could still hold on to late long positions.
in Commentary Overnight, Keith Alan, co-founder of monitoring resource Material Indicators, told traders to beware of these “whale games”.
“Earlier today, some people requested $38,000 of liquidity, opening the door to $38,500. Don’t think it’s a friendly whale that energizes you. “It was a killer whale trying to give you FOMO,” he wrote about the initial trip, which cost more than $38,000.
Allen went on to say that U.S. Federal Reserve Chairman Jerome Powell’s December 1 comments could provide an external BTC price catalyst that could push it up to $40,000.
However, whales may be spying on key levels where selling is possible.
“My assumption is that they will continue to do so until they have enough to invest,” he predicted.
“That doesn’t mean JPow’s speech couldn’t be the catalyst to send prices above $40,000. Especially if you’re not prepared to sweep the local lows between now and then, although you could see the bidding liquidity increasing above $37.5,000. Then you stopped paying attention to how the whale game was played.”
The attached chart shows that liquidity on the sell side of the order is concentrated at $38,500, a level that is still undisputed as of this writing.
Others were convinced that further near-term upside was possible and even possible.
Popular trader Skew analyzed the current market composition and concluded that volume is all that is needed to break the $40,000 watershed.
$BTC 4 hour update
The trend is still respected and HL is happening exactly where we expected it to happen ($36.7K).Need HH Now, Volume Support Breaks $38K – $40K Resistance https://t.co/iPPGzVIbFF pic.twitter.com/SQtKwvBdz0
— Skew Δ(@52kskew) November 29, 2023
Ackman bets on Fed rate cut in first quarter
As Cointelegraph reported, key US macro data ahead of Powell’s speech will give additional weight to Fed policy.
Related: ‘Future-Looking’ Bitcoin Indicator Spotlights $48,000 BTC Price Around ETF
This comes in the form of Q3 GDP and October Personal Consumption Expenditure Index for November 29 and November 30, respectively.
Previously, markets had assumed there would be no more interest rate hikes at the December Federal Open Market Committee meeting as inflation declined faster than expected.
In a Nov. 28 interview with Bloomberg, Bill Ackman, CEO and founder of hedge fund Pershing Square Capital Management, said the Fed may be forced to adjust interest rates as early as 2024.
“I think they’ll cut the rates. “I think rates will be cut sooner than people expect,” he said.
Ackman added that if interest rates aren’t cut “soon,” the risk of a so-called hard landing for the U.S. economy will increase as inflation declines.
“The market is expecting it to be in the middle of next year. “I think it’s more likely that it will be as early as the first quarter,” he predicted.
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