Bitcoin (BTC) fell back from resistance after Wall Street opened on November 29 as U.S. GDP data beat expectations.
GDP sets the tone for macro-sensitive cryptocurrencies
Data comes from Cointelegraph Markets Pro and trading view Bitcoin prices then staged a familiar short-term retracement.
The previous day, Bitcoin bulls managed to push the market above $38,000, but saw volatility around that level and eventually fell with the release of US macro data.
This indicates GDP in the third quarter Growth rates exceeded expectations, at 5.2% and 4.9% respectively.
That has reignited concerns about how the Fed will handle policy ahead of a rate decision in mid-December.
“5.2% is the final reading, which would mark the highest GDP growth since the fourth quarter of 2022”, financial commentary resource “Kobeissi Letter” wrote Part of the reactions on X (formerly Twitter).
“Can the Fed deliver a soft landing?”
Corbisi quoted Bill Ackman, CEO and founder of hedge fund Pershing Square Capital Management, who the day before publicly predicted that the Federal Reserve would adjust interest rates as early as the first quarter of 2024.
“Yesterday, Bill Ackman bet on a hard landing, with rate cuts starting in the first quarter. Currently, futures won’t start cutting rates until June 2024,” it continued.
Data from CME Group Fed Watch Tool After the release of GDP, the market’s bets on further interest rate hikes in December increased slightly, and further key data will be released on November 30. At the time of writing, the probability of a rate hike was 4.2%, compared with 0.5% previously.
Analyst: Bitcoin is worth buying below $35,000
Meanwhile, Bitcoin continues to behave in a familiar manner in recent days.
Related: “Buy Rumors, Sell News”—Bitcoin ETF May Spark TradFi Sell-Off
Although some believe in an eventual push towards $40,000, bulls have been unable to break through the key resistance zone starting at $38,500.
“No confirmation of HH or breakout yet, eyeing a sweep of $37,300 area and setting HL for HH,” popular trader Skew told X subscribers, referring to the need for “higher highs.”
Bitcoin USD 4 hours
No confirmation of HH or breakout yet, eyeing a sweep of the $373k area and a HL setup for HH pic.twitter.com/wwGTTegxlM— Skew Δ (@52kskew) November 29, 2023
Trader Daan Crypto Trades said that Bitcoin price performance may enter a more subdued period before a new round of upward volatility.
“Prices consumed some liquidity both above and below,” he commented on the day’s events.
“I wouldn’t be surprised to see more lateral cuts from both sides to build more positions before the next bigger move.”
The accompanying chart shows liquidity for the BTC/USDT pair on Binance, the world’s largest exchange.
Michaël van de Poppe, founder and CEO of trading firm MN Trading, looked at potential downside opportunities, proposing a range between $33,000 and $35,000 – already a popular area based on liquidity.
His latest X analysis reads: “The market is consolidating. Bitcoin still has not broken through $38,000, which provides opportunities.”
“If we continue to make higher lows and higher highs, a breakout looks set to happen soon. Structure lost? Buy at $33-35K.”
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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