Bitcoin (BTC) ignored new US macro data at the opening on Wall Street on November 30 as traders focused on the monthly close.
PCE maintains pressure on Fed pivot.
BTC price action is sticking to a narrow intraday range below $38,000, according to data from Cointelegraph Markets Pro and TradingView.
Expectations were high that the Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) index, would help spur volatility after failing to break out the previous day.
However, at the time of this writing, that has not materialized and the final Wall Street opening of November is still to come.
The PCE was broadly in line with expectations, including the Federal Reserve’s tightening of monetary tightening and the strengthening downward trend in inflation.
Now, on the question of whether interest rates will start to fall – a key takeaway for risky assets – financial commentary resource The Kobeissi Letter nevertheless remained cautious.
“Another sign is that inflation is falling but still exceeding the Fed’s 2% target. “Can the Fed really change course now?” that asked a question On X (formerly Twitter) after PCE results.
Kobeissi reiterated the words of Bill Ackman, founder and CEO of hedge fund Pershing Square Capital Management. He predicted earlier this week that rate cuts would begin in the first quarter of 2024.
“It is important to note that the effectiveness of monetary policy is delayed. But does the Fed really want to jump the gun and risk cutting rates too quickly?” It continued.
“We believe the call for a rate cut in the first quarter of 2024 is too ambitious.”
PCE failed to dampen market expectations about Fed policy. Data from CME Group’s FedWatch tool still shows near-unanimous expectations that the moratorium on rate increases will continue next month.
BTC price rises nearly 10% in November
However, monthly closing prices are more interesting to Bitcoin market participants.
Related: Bitcoin ETF Will Drive BTC Price Up 165% in 2024 — Standard Chartered
BTC/USD is up nearly 10% in November at the time of this writing, making it its first “green” 11th month since 2020. A close above $37,660 would make the close the highest since May 2022.
Bitcoin fell 7.1% and 16.2% in November 2021 and 2022, respectively, according to data from statistics resource CoinGlass.
Popular trader Jelle analyzed the current chart setup and identified why Bitcoin’s Relative Strength Index (RSI) reading is bullish.
“After building a hidden bullish divergence over the past month, Bitcoin has broken out of the RSI downtrend!” that said There were X number of subscribers that morning.
The attached chart shows the area the bulls need to secure.
“If prices can stay in the gray box, I think they will soon start to rise. All attention is focused on monthly closings,” Jelle added.
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.