Bitcoin (BTC) briefly touched $17,000 again on Nov. 30 on the volatility of the monthly close.
“A monthly close at $17,500 is the most bullish outcome,” says a trader
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair followed traders’ predictions to sweep higher levels before consolidating.
Highs of $17,072 appeared on Bitstamp, but the pair failed to turn the highs into support. At press time, the price of Bitcoin was around $16,900.
$17,000 marks a key range that bulls need to recapture, Cointelegraph reported the day before, and until that happens, the status quo holds.
“BTC bulls want to hold $16,800 as first Counter-Trend Support/Resistance swing. Returning below would represent minor upside momentum,” summarized popular analyst Cheds, revealing a short position on the highs.
Within hours of the close of the monthly candle, markets were expecting volatility to kick in as losses after the weekly close on November 27 had already been erased.
“Looking for a monthly close back above $17,500 (June lows) for the most bullish outcome possible here,” wrote fellow analyst, Credible Crypto, in part of a Twitter update.
At press time, the BTC/USD pair was down around 17.5% for the month of November, according to data from Coinglass.
BTC price “event risk” accumulates
The macroeconomic outlook was stable on the day, with Asian stocks picking up strength again ahead of the Wall Street open on Nov. 30.
Hong Kong’s Hang Seng had risen 2.2% at press time, and the Shanghai Composite Index was managing to recoup early losses.
However, when analyzing the outlook for December, trading firm QCP Capital pointed to several “event risk” Bitcoin users should take note of.
The US Consumer Price Index (CPI) data arrives on December 13, coinciding with US lawmakers’ initial hearing on the FTX debacle.
A day later, the Federal Open Market Committee (FOMC) of the Federal Reserve must present expectations and inflation policy.
“Therefore, we believe that while more one-off shocks may not be so forthcoming in a fear-ridden market, a continued deflation of the cryptocurrency market will continue well into next year as many are forced to continually sell assets to increase liquidity,” QCP commented in its latest Crypto Circular newsletter:
“This is likely to only end at the end of the second and third quarters of next year, when the real economy is hit hard by the 4.75% overnight interest rate and the Fed is then forced to change its stance – releasing much-needed liquidity that could then find its way into the cryptocurrency markets once again.”
A possible additional catalyst for BTC price volatility, he added, would come in the form of refunds to Mt. Gox exchange creditors scheduled for January.
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