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Bitcoin Reacts to U.S. GDP Rise: A Detailed Look at the Crypto Leader's Movement Amid Federal Rate Speculations

Algoine News
Summary:
Following the positive U.S. GDP figures that exceeded forecasts, Bitcoin displayed a standard price retracement after temporarily surging above $38,000. The rise in GDP reignited apprehensions about the Federal Reserve's response ahead of a mid-December interest rate decision. Traders continue to monitor Bitcoin's behavior, typically vacillating around the $38,500 resistance level, with some predicting an eventual surge towards $40,000. If current trends of higher lows and highs persist, a breakout seems imminent, according to trading firm MN Trading's CEO Michaël van de Poppe. However, in case the structure is lost, the buying target is set at $33,000-$35,000. The article reminds readers to conduct their own research prior to making investment decisions as trading involves risk.
After the Wall Street kick-off on November 29, Bitcoin, the leading cryptocurrency, rallied back from resistance as the GDP numbers of the United States surpassed forecasts. A common retracement in Bitcoin's price on shorter timeframes was in spotlight, as per Cointelegraph Markets Pro and TradingView data. In spite of an initial successful push over the $38,000 mark by Bitcoin enthusiasts, the cryptocurrency bobbed around that figure until the U.S. macro-economic data came in. This report unveiled the Q3 GDP climbing higher than predicted, recording a growth of 5.2% against an estimation of 4.9%. This sparked renewed unease about how the Federal Reserve may respond, particularly leading up to the decision on interest rates in mid-December. According to financial commentary source The Kobeissi Letter, if 5.2% is the final reading, it would represent the most substantial GDP growth since the final quarter of 2022. Moreover, a question arose on whether the Federal Reserve can accomplish a "soft landing." The letter alluded to a statement from Bill Ackman, the founder and CEO of Pershing Square Capital Management, who recently expressed the possibility of a Federal Reserve rate change as early as the first quarter of 2024. He continued that as it stands, future predictions don't foresee rate cuts commencing until June 2024. Following the GDP announcement, the CME Group’s FedWatch Tool showed a minor uptick in expectations of another rate rise in December, with additional vital data scheduled for November 30. The probability of a hike was recorded at 4.2% compared to the previous 0.5%. Meanwhile, Bitcoin's behaviour resembled that of recent days, continuously falling short of breaching a significant resistance level at $38,500, even though some optimists are expecting a surge towards the $40,000 mark. Skew, a renowned trader, spoke to subscribers about a required "higher high." Daan Crypto Trades, another trader, implied that Bitcoin might soon experience a flatter price movement ahead of a surge in upside turbulence. He discussed the day's happenings, anticipating more side-by-side action to accumulate more positions ahead of the next significant shift. Regarding potential downturn opportunities, Michaël van de Poppe, founder and CEO of trading firm MN Trading, highlighted a range between $33,000 and $35,000 — an already favourable zone based on liquidity. "Markets are consolidating. Opportunities are arising, with no breakout of Bitcoin above $38K yet", said his recent X analysis. "If the trend of achieving higher lows and highs continues, a breakout seems to be imminent. If the structure is lost, we'll be buying at $33-35K." Please note that this news piece does not offer investment advice or endorse any trading moves. Every investment involves risks, and readers are encouraged to carry out their own researches before making a decision.

Published At

11/29/2023 6:36:16 PM

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