Bitcoin keeps up the gains with U.S. stocks with hours to go until a decision on rate hikes and comments from Fed Chair Powell.
Bitcoin bullish with Ustocks into FOMC
U.S. stocks edged higher as markets eagerly awaited feedback from the Fed after the November Consumer Price Index (CPI) print showed inflation slowing beyond expectations.
Dec. 14 was set to see a decision on rate hikes for the month from the Federal Open Market Committee (FOMC), together with a speech from Fed Chair Jerome Powell.
The latter event tends to spark considerable volatility, with pundits closely scrutinizing Powell’s language for hints about longer-term economic policy.
“With FOMC coming up today, we’re at a crucial stage,” popular trader Crypto Ed summarized in a Twitter thread.
“A sweep of 18,2k liquidity is what everyone is looking for. Max pain would be a godlike pump and leaving everyone behind.”
Crypto Ed nonetheless warned that an upward reversal for the U.S. dollar index (DXY), combined with a stepwise decline in stocks, would scupper Bitcoin bulls’ euphoria.
“A decoupling would be nice, but unlikely,” he added.
Michaël van de Poppe, founder and CEO of trading firm Eight, was overall more bullish on BTC.
“The markets fell from $20K to $15.6K due to the FTX collapse. We’re currently trading at $18K, slightly higher than the low in June,” he told Twitter followers in one of several posts on the day.
“I understand the bearish thesis, but this is honestly a sign of strength for Bitcoin.”
Prior to that, Van de Poppe had given upside targets of up to $18,300, with $17,200 needing to sustain as support.
$12,000 BTC waits in the wing
Entertaining a bearish end to events, traders including Crypto Tony and Il Capo of Crypto went against the grain on the day.
For Crypto Tony, a trip as low as $10,000 was “not out of the question yet,” while Il Capo of Crypto produced a frank forecast of an imminent capitulation.
“Simple,” he commented, with a chart giving $12,000 as a support zone to cushion the fall.
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Source : Cointelegraph.com