Bitcoin Holds Momentum at $38,000 as Market Corrections Loom
On November 29, Bitcoin (BTC) maintained its momentum at $38,000, while analysts warned of potential market corrections. The largest cryptocurrency continued to aim for new 18-month highs, surprising investors by holding onto higher levels. Futures markets even reached $39,000, causing some to caution against late long positions that could be left stranded at the top.
Keith Alan, co-founder of monitoring resource Material Indicators, warned traders to be wary of “whale games” where large-volume traders manipulate the market. He pointed out that a recent increase in liquidity to $38,500 was not a friendly boost, but rather a tactic used by whales to entice investors into FOMO (Fear Of Missing Out) buying. He suggested that Jerome Powell’s upcoming speech on December 1, as the chair of the United States Federal Reserve, could be an external catalyst for Bitcoin’s price, potentially pushing it past $40,000.
An accompanying chart showed that the sell-side liquidity order book was concentrated at $38,500, a level that had yet to be challenged at the time of writing. Despite the cautionary warnings, some traders remained confident that there was still potential for further short-term upside. Popular trader Skew analyzed the current market composition and concluded that volume was the only missing factor for a breakout towards the $40,000 level.
Ackman Bets on Q1 Fed Rate Cut
Before Powell’s speech, key U.S. macro data will be released, which will have an impact on Federal Reserve policy. This includes the Q3 GDP and the October print of the Personal Consumption Expenditures Index on November 29 and 30, respectively. Bill Ackman, CEO and founder of hedge fund Pershing Square Capital Management, predicted that the Fed might have no choice but to pivot on rates at the start of 2024. He stated that not cutting rates “pretty soon” would increase the risk of a hard landing for the U.S. economy as inflation tails off.
Please note that this article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.