On November 29, Bitcoin (BTC) demonstrated resilience by maintaining its momentum at the $38,000 level, despite warnings of potential market corrections.
Bitcoin’s price trajectory continued to target new 18-month highs, as reported by data from Cointelegraph Markets Pro and TradingView.
It had previously reached highs matching those of the previous day, even surpassing $39,000 in futures markets.
The enthusiasm surrounding Bitcoin derivatives had led to debates about the possibility of large-volume traders leaving late long positions vulnerable at these elevated levels. Keith Alan, co-founder of monitoring resource Material Indicators, issued a word of caution to traders regarding what he referred to as “whale games.”
He highlighted an instance where liquidity at $38,000 was pulled to trigger a move to $38,500, emphasizing that it wasn’t necessarily a friendly gesture but rather a strategic move by large players.
Looking ahead, attention was focused on the words expected from Jerome Powell, the chair of the United States Federal Reserve, scheduled for December 1.
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Powell’s statements could potentially serve as an external catalyst for Bitcoin’s price, with the possibility of it surpassing the $40,000 mark.
However, it was noted that whales (large cryptocurrency holders) would likely be closely monitoring a key level at which to sell off their holdings.
A chart accompanying the article revealed that the sell-side liquidity in the order book was concentrated at $38,500, a level that had not been challenged at the time of writing.
Despite these considerations, some remained optimistic about the possibility of further short-term upside, suggesting that increased trading volume was all that was needed for a breakout toward the $40,000 threshold.
In the broader financial context, Bill Ackman, CEO and founder of hedge fund Pershing Square Capital Management, expressed his belief that the Federal Reserve might have to make a pivot on interest rates as early as the first quarter of 2024.
Ackman argued that failing to cut rates soon would increase the risk of a “hard landing” for the U.S. economy as inflation subsided.
Key U.S. macroeconomic data, including the Q3 GDP and the October print of the Personal Consumption Expenditures Index, were expected to play a role in shaping Fed policy decisions.
It’s important to note that the article does not provide investment advice and emphasizes the need for individuals to conduct their own research when making investment decisions.
