Bitcoin (BTC) retreated from resistance after the Nov. 29 Wall Street open as US GDP numbers beat expectations.
GDP sets the tone for macrosensitive cryptocurrencies
Data from Cointelegraph Markets Pro and TradingView followed a well-known BTC price pullback on short time frames.
Bitcoin bulls had managed to push the market above $38,000 the previous day, only to turn around that level before finally falling when the US macroeconomic data arrived.
This showed that third quarter GDP accelerated beyond forecast levels, reaching 5.2% versus 4.9%, respectively.
This renewed concerns about how the Federal Reserve might handle its policy ahead of an interest rate decision in mid-December.
“5.2% is the final reading, it will mark the highest GDP growth since the fourth quarter of 2022,” financial commentary resource The Kobeissi Letter wrote partly from a reaction on X (formerly Twitter).
“Can the Fed achieve a soft landing?”
Kobeissi referred to the words of Bill Ackman, CEO and founder of the hedge fund Pershing Square Capital Management, who the previous day had gone on record as predicting a Fed rate turnaround as soon as the first quarter of 2024.
“Yesterday, Bill Ackman bet on a hard landing with rate cuts starting in the first quarter. Futures currently do not forecast rate cuts until June 2024,” he continued.
Data from CME Group’s FedWatch tool showed slightly increasing bets on a further rise in December following the GDP release, with more key data due on November 30. The odds of an increase stood at 4.2% at the time of writing, up from 0.5% previously.
Analyst: Bitcoin is a buy below $35,000
Meanwhile, Bitcoin continued to act in a familiar late-day style.
Related: ‘Buy the Rumor, Sell the News’: Bitcoin ETF May Spark TradFi Selloff
The bulls have yet to break a key resistance zone starting at $38,500, even though some are confident that an assault on $40,000 will eventually occur.
“No HH or breakout confirmation yet, considering a sweep of the $37.3K area and HL setup for the HH,” popular trader Skew told X subscribers, referring to a “more high” being required. high”.
$BTC 4H
No HH or breakout confirmation yet, expect $37.3K area sweep and HL setup for HH https://t.co/VDSl43g7Hh pic.twitter.com/wwGTTegxlM— Skew Δ (@52kskew) November 29, 2023
Fellow trader Daan Crypto Trades suggested that a period of flatter BTC price performance could now enter before a new bout of bullish volatility.
“The price took out some liquidity above and below,” he commented on the day’s events.
“I wouldn’t be surprised to see more lateral moves for both sides to build more positions before the next big move.”
An accompanying chart shows the liquidity of the BTC/USDT pair on the world’s largest exchange, Binance.
Looking at possible downside opportunities, Michaël van de Poppe, founder and CEO of trading company MN Trading, pointed to a range between $33,000 and $35,000, which is already a popular liquidity-based zone.
“Markets are consolidating. Offering opportunities, there is still no Bitcoin breakout above $38,000,” reads its latest X analysis.
“If we continue to make higher and higher lows and higher highs, it looks like a breakout will happen soon. Lost structure? Buying at $33,000-$35,000.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
