Bitcoin (BTC) attempted to turn $17,000 into support on Dec. 1 after closing its lowest monthly close in two years.
Bitcoin rallied in late November
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering around $17,100 in a second intraday push to reach higher levels.
The pair managed to avoid losses at the close of the monthly candle and instead posted solid daily gains of around 4.5% for November 30.
Nonetheless, Bitcoin plunged 16.2% for the month, making November 2022 the worst since 2019.
The more optimistic mood coincided with comments from the US Federal Reserve. In a speech on inflation and the labor market, Chairman Jerome Powell openly stated that smaller interest rate hikes could start as early as December.
“Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening have so far yet to be felt,” he added:
“Therefore, it makes sense to ease the pace of our rate hikes as we approach the level of containment that will be sufficient to reduce inflation. The time to ease the pace of rate hikes may come as soon as the meeting of december”.
Powell characteristically warned against announcing a complete turning point in monetary policy, something that markets had been waiting with great interest all year.
“Given our progress in tightening monetary policy, the timing of that easing is much less significant than the questions of how much more we will have to raise rates to control inflation, and how long it will be necessary to keep policy in place.” a restrictive level,” he added.
However, stocks reacted positively, with the S&P 500 Index and Nasdaq Composite ending the day up 3.1% and 4.4%, respectively, in line with Bitcoin.
There is not much euphoria among the traders
For their part, cryptocurrency market commentators were similarly cool about the immediate outlook, despite modest end-of-month gains.
Crypto Tony warned that the bulls were getting “puffed up” in December and now was not a proper blind entry point.
“Now is not the time to go all-in, thinking this is the bottom of the crypto market,” said to Twitter followers:
“We still have to see; – Higher macro high and higher low (market structure trend reversal) – Bullish volume coming in – Spot buying on the rise – Corrective structure completed.”
A key level to hold for the continuation of the “bull market structure”, addedwas USD 16,700.
Michaël van de Poppe, founder and CEO of the trading company Eight, coincided on the importance of a $16,700 centered area for his own strategy.
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