Bitcoin (BTC) experienced a retracement after the release of better-than-expected United States GDP figures on November 29. This article explores the impact of the GDP data on the cryptocurrency market and provides insights from various analysts.
Bitcoin bulls had managed to push the market above $38,000, but the price struggled to maintain momentum and eventually dropped as the US macro data was released. The Q3 GDP data showed an acceleration beyond anticipated levels, raising concerns about how the Federal Reserve might handle policy ahead of an interest rates decision in mid-December.
A financial commentary resource, The Kobeissi Letter, highlighted the significance of the GDP growth and questioned whether the Federal Reserve could achieve a soft landing. The article also referenced Bill Ackman’s prediction of a Fed rate pivot in Q1 2024.
Data from CME Group’s FedWatch Tool indicated increasing bets on a further rate hike in December. Analysts were closely monitoring additional key data due to be released on November 30.
Despite bullish sentiment, Bitcoin failed to break through the key resistance zone starting at $38,500. Traders and analysts suggested that the cryptocurrency might experience a period of flatter price performance before another significant upside move.
Potential Downside Opportunities
Some traders, such as Michaël van de Poppe, identified a potential range between $33,000 and $35,000 as a buying opportunity. However, it was emphasized that every investment and trading move involves risk, and readers should conduct their own research before making any decisions.