Bitcoin Recovers Above $41,000 as Investors Eye US Federal Reserve Decisions
Summary:
Bitcoin (BTC) saw a rise above $41,000 on December 13 amidst the anticipation of the United States Federal Reserve's decisions. Despite lower than expected November Producer Price Index (PPI) readings, Bitcoin's volatility remained unmoved. The market is closely observing the Federal Open Market Committee (FOMC) meeting for any potential rate changes, with a press conference scheduled from the Fed Chair Jerome Powell. Crypto expert Jelle predicts sideways movement for BTC and emphasizes that a significant hurdle remains with the $48,000 mark, while Daan Crypto Trades notes an increase in leveraged bets around the $40.5K and $41.4K levels.
On December 13, Bitcoin (BTC) bounced back above $41,000 as the opening bell sounded on Wall Street, with investors closely watching the US Federal Reserve. The BTC/USD 1-hour chart experienced a surge, according to reports from Cointelegraph Markets Pro and TradingView, coinciding with the latest macroeconomic figures from the US.
The Producer Price Index (PPI) for November fell below anticipated levels, reinforcing the ongoing narrative of diminishing inflation. Meanwhile, the Consumer Price Index (CPI), although not as positive, did not trigger any further distress for risky assets.
The Kobeissi Letter, a trading resource, highlighted on its X (previously Twitter) feed that PPI inflation is at its lowest since December 2021. The commentary precedes the pivotal Federal Open Market Committee (FOMC) meeting, where discussions around interest rate adjustments will take place. The market is keenly observing signs of a potential 'Fed pivot'. The announcement is scheduled for 2pm Eastern Time, followed by a press conference by Fed Chair Jerome Powell at 2.30pm.
These events may prompt short-lived volatility in cryptocurrency markets among others, even though Bitcoin showed subdued reactions to the macroeconomic data. Based on CME Group’s FedWatch Tool, the marketplace persists in its belief that the FOMC meeting will not lead to any modifications in interest rates.
In terms of BTC price action, there remained no distinct trend on lower timeframes. As for support and resistance levels, they were steady, with well-known trader, Jelle, emphasizing that the significant $48,000 mark is yet to be surpassed.
Despite shifting lower timeframes, Jelle asserts that Bitcoin appears to be adjusting mid-range. He noted for his X subscribers that once the $48,000 level is surpassed, price discovery is within grasp. Jelle’s analysis for the day predicted continued sideways movement and wagered that the majority of Bitcoin's decline has already taken place.
Daan Crypto Trades, another trader, noticed increasing leveraged bets in a zone that is currently being cleared by the spot price. He pointed out significant liquidation clusters and anticipated some activity around the $40.5K and $41.4K levels.
Published At
12/13/2023 5:19:07 PM
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