Bitcoin (BTC) set new one-month highs at the Wall Street open on December 14 in a day filled with key events for the US Federal Reserve.
Bitcoin bullish with stocks in the FOMC
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair reached $18,126 on Bitstamp, breaking the previous day’s high of $18,106.
US stocks rose as markets anxiously awaited comments from the Fed after the November consumer price index showed inflation slowing beyond expectations.
December 14 was scheduled to see a decision on the month’s rate hikes by the Federal Open Market Committee (FOMC), along with a speech from Fed Chairman Jerome Powell.
This latest event tends to trigger considerable volatility, and experts closely scrutinize Powell’s language for clues about long-term economic policy.
“With the arrival of the FOMC today, we are at a crucial stage,” summarized popular Crypto trader Ed in a Twitter thread.
“A sweep of 18,200 liquidity is what everyone is looking for. The maximum pain would be a divine pump and leave everyone behind.
Nevertheless, Crypto Ed warned that a bullish reversal of the US Dollar Index, combined with a gradual decline in stocks, would kill the euphoria of Bitcoin bulls.
“A decoupling would be nice, but unlikely,” he added.
Michaël van de Poppe, founder and CEO of trading firm Eight, was generally more bullish on BTC.
“Markets fell from $20,000 to $15,600 due to the FTX collapse. We are currently trading at $18,000, slightly above the June low”, said to his Twitter followers in one of his messages.
“I understand the bearish thesis, but this is honestly a sign of strength for Bitcoin.”
Before that, Van de Poppe had given Upside targets as low as $18,300, with $17,200 needing to hold as support.
$12,000 BTC waits on the wing
Amused by a bearish end to events, traders like Crypto Tony and Il Capo of Crypto went against the grain.
For Crypto Tony, a trip as low as $10,000 “wasn’t out of the question yet,” while Il Capo of Crypto produced a frank prognosis of an imminent capitulation.
“Simple”, commented along with a chart that provides $12,000 as a support zone to cushion the fall.
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