Bitcoin eyes best since November 2020 as PCE fails to move BTC price.
Bitcoin (BTC) shrugged off fresh US macro data at the November 30 Wall Street open as traders focused on the monthly close.
PCE keeps Fed pivot pressure alive
Data from Cointelegraph Markets Pro and TradingView showed BTC price movements stuck in a narrow intraday range below $38,000.
After a successful crash days earlier, hopes were high that the Federal Reserve's “preferred” measure of inflation, the personal consumption expenditures (PCE) index, would help fuel volatility.
As of this writing, however, this has not happened, with November's final Wall Street still to come.
PCE came in broadly in line with expectations – a strengthening of the Fed's monetary policy and declining inflation.
Questioning whether interest rates may now begin to decline – the main takeaway for risk assets – the financial opinion source said Kobeissi's letter remained cautious.
“Another sign is that inflation is slowing but still above the Fed's 2% target. Can the federation be formed now? Asked by X (formerly Twitter) after PCE results.
Kobeisi reiterated a quote from hedge fund founder and CEO Bill Ackman earlier in the week, who predicted rate cuts starting in Q1, 2024.
“It is important to note that the effects of monetary policy are delayed. However, does the Fed want to jump the gun and risk cutting rates too soon? He continued.
“We believe that rate cut calls in Q1 2024 are very ambitious.”
PCE failed to dampen market expectations for Fed policy, with data from CME Group's FedWatch Tool still pointing to expectations of a near-halt in rate hikes next month.
November BTC price increase of about 10%
For Bitcoin market participants, however, the monthly close was more interesting.
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BTC/USD is up nearly 10% in November at the time of writing, making it the first “green” month of the year since 2020. Above $37,660, the close will be the highest since May 2022.
In the year In November 2021 and 2022, Bitcoin fell 7.1% and 16.2%, respectively, according to data from statistical resource CoinGlass.
Analyzing the current chart position, renowned trader Jelle has identified bullish factors in Bitcoin's Relative Strength Index (RSI) readings.
“After building a huge hidden bullish divergence last month, Bitcoin broke the RSI downtrend!” He told X subscribers earlier in the day.
The accompanying chart shows the space required for keeping bulls.
“If price can hold the gray box, I think this will start moving higher soon. All eyes are on the monthly close,” Jelle added.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
