Bitcoin is on track for its strongest November since 2020 despite PCE’s inability to impact BTC price.
Bitcoin Price Holds Steady as Traders Focus on Monthly Close
PCE Keeps Fed Pivot Pressure Alive
Bitcoin (BTC) maintained a narrow intraday range below $38,000 on November 30, as traders awaited the monthly close. Despite hopes for increased volatility following the release of the Personal Consumption Expenditures (PCE) Index, BTC price movements stayed within a tight range. The PCE data came in line with expectations, reinforcing concerns about declining inflation and its implications for Federal Reserve monetary policy.
Financial commentary resource The Kobeissi Letter questioned whether the Fed might consider interest rate cuts in light of the falling inflation, despite the Fed’s 2% target. This speculation followed predictions from hedge fund Pershing Square Capital Management’s founder, Bill Ackman, who forecasted rate cuts as early as Q1 2024.
Market Expectations of Fed Policy Remain Steady
Despite the PCE results, market expectations of Fed policy continued to point toward a rate hike pause next month, according to data from CME Group’s FedWatch Tool. The data showed almost unanimous expectations of a rate hike pause continuing in the near term.
November BTC Price Gains Near 10%
For Bitcoin market participants, the focus was on the monthly close, with BTC/USD up nearly 10% in November. This made it the first positive November since 2020, with the potential to close at its highest level since May 2022. The gains in November 2021 and 2022 were -7.1% and -16.2%, respectively, according to CoinGlass statistics.
Trader’s Analysis Points to Bullish Signs
Popular trader Jelle analyzed Bitcoin’s relative strength index (RSI) readings and found reasons to be bullish. He noted that Bitcoin had breached its RSI downtrend and highlighted a potential area for further gains on the chart.
Jelle’s analysis and chart suggested that Bitcoin could see further upward movement if it holds the designated level. His observations were in line with the anticipation around the monthly close.
In conclusion, the article emphasized that it did not provide investment advice and recommended that readers conduct their own research before making any investment decisions.
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