Bitcoin (BTC) Monthly Close: What It Means for the Market
The monthly close of Bitcoin (BTC) has garnered the attention of traders and investors as they analyze the market’s performance. Despite fresh United States macro data, BTC price movements remained within a narrow intraday range below $38,000. Traders were hoping for increased volatility following the release of the Personal Consumption Expenditures (PCE) Index. However, the PCE data came in line with expectations, leaving the market uncertain about the Federal Reserve’s next move.
PCE Keeps Fed Pivot Pressure Alive
The PCE Index is considered the Federal Reserve’s “preferred” inflation metric. A boost in inflation would have provided insight into the central bank’s monetary tightening measures and its stance on declining inflation. However, the data did not significantly impact market expectations of Fed policy. Financial commentary resource The Kobeissi Letter questioned whether the Fed could pivot now, given that inflation is still above the target of 2%.
November BTC Price Gains
While the PCE data may not have had a significant impact on market expectations, Bitcoin market participants were more interested in the monthly close. At the time of writing, BTC/USD was up nearly 10% in November, marking the first positive performance in the 11th month of the year since 2020. If the price of Bitcoin closes above $37,660, it would be the highest monthly close since May 2022. In comparison, Bitcoin fell 7.1% and 16.2% in November 2021 and 2022, respectively.
Bullish Signs in Bitcoin’s Chart Setup
Popular trader Jelle analyzed Bitcoin’s relative strength index (RSI) readings and saw reasons to be bullish. The RSI readings showed a hidden bullish divergence, indicating a potential upward movement in price. Jelle highlighted the importance of the monthly close and stated that if the price can hold within a specific range, it could lead to further upward momentum for Bitcoin.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading move carries risks, and readers should conduct their own research before making any decisions.