Bitcoin (BTC) ignored the latest U.S. macro data at the Nov. 30 open on Wall Street as traders focused on the monthly close.
PCE maintains Fed’s turn to pressure
Data comes from Cointelegraph Markets Pro and trading view It shows that BTC price trend fluctuated within a narrow range during the session, below $38,000.
After the previous day’s failed breakout, hopes were high that the Fed’s “go-to” inflation gauge – the personal consumption expenditures (PCE) index – would help increase volatility.
However, at the time of writing, this scenario has not yet become a reality, as the final opening on Wall Street in November has yet to occur.
The PCE data was largely in line with expectations – fueling the Fed’s monetary tightening and reinforcing falling inflation.
Still, financial commentary source Kobeissi Letter remains cautious in questioning whether interest rates may now start to fall, a key takeaway for risk assets.
“Another sign that inflation is falling but remains above the Fed’s 2% target. Can the Fed really turn the corner now?” It ask PCE posts on X (formerly Twitter) after the results.
Corbisi again referenced comments from Bill Ackman, founder and CEO of hedge fund Pershing Square Capital Management, who earlier this week predicted rate cuts would begin as early as the first quarter of 2024.
“It is worth noting that the effects of monetary policy have a lag. However, does the Fed really want to risk cutting interest rates prematurely?” it continued.
“We believe calls for a rate cut in the first quarter of 2024 are overly ambitious.”
PCE did not weaken market expectations for Fed policy, according to CME Group data Fed Watch Tool Still, there is almost unanimous expectation that interest rates will continue to be paused next month.
BTC price rose nearly 10% in November
However, the monthly close is more interesting for Bitcoin market participants.
Related: Bitcoin ETF to drive BTC price up 165% in 2024 — Standard Chartered
As of this writing, BTC/USD is up nearly 10% in November, making it the first “green” 11 months since 2020. A closing price above $37,660 would set the highest level since May 2022.
In November 2021 and November 2022, Bitcoin fell by 7.1% and 16.2% respectively data From statistical resource CoinGlass.
By analyzing the current chart setup, popular trader Jelle sees reason for a bullish Bitcoin relative strength index (RSI) reading.
“After building a huge hidden bullish divergence over the past month, Bitcoin has broken out of the RSI downtrend!” he Tell There were X subscribers earlier in the day.
The accompanying chart shows the areas bulls need to secure.
“If prices can hold the gray box, I think prices will start moving higher soon. All eyes will be on the monthly close,” Jeller added.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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