Bitcoin (BTC) was stable near $17,000 at the Wall Street open on Dec. 12, as Binance-related news failed to drive BTC price down.
Factors Align To “Scare” Bitcoin Trading
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair avoided further volatility at the open of the US markets.
After trading sideways all weekend, the pair offered few clues to analysts, who expected US macroeconomic data to shake up the status quo.
Nevertheless, Analysts agreed that the release of the November Consumer Price Index (CPI) would be a pivotal moment for crypto assets, as the numbers, due to be released on December 13, could lead to significant ups and downs.
Later events related to the Federal Reserve would also influence price action, they noted.
Meanwhile, however, Bitcoin seemed to shrug its shoulders at the news that the world’s largest exchange Binance was the subject of a money laundering lawsuit in the United States.
Appearing on Reuters, One report claimed that the Department of Justice (DoJ) was undecided whether to bring charges against Binance and its CEO, Changpeng Zhao, after an investigation that began in 2018.
This followed fresh concerns about the exchange’s proof of reserves, which several commentators, however, labeled as “FUD” as it spread through the media.
“Bitcoin is holding steady, altcoins are losing value, $BTC dominance is bouncing higher and is currently rallying”, wrote Michaël van de Poppe, founder and CEO of the trading firm Eight, in part of a recap of the day.
Van de Poppe noted that market participants remained “scared” due to upcoming macroeconomic data and legal developments related to the FTX scandal.
Crypto sentiment overall remained stronger than its worst case scenario, according to the Crypto Fear & Greed Index, which measured 27/100 on the day, still above his lowest zone of “extreme fear”.
Risk-asset fund could come after Fed turnaround
As for short-term market developments, there were new bearish warnings for both cryptocurrencies and risk assets.
The popular trader Mustache focused on US stocks to remind his followers that while the Federal Reserve could pivot on rate hikes, this has not historically marked a turning point for yield.
“Don’t forget the stock market has crashed very hard every time in history AFTER the FED Pivot”, commented next to a graph.
“It is possible that the market will rally, due to expectations of a pivot. After the official announcement: Sell the news”.
He added that the result could be a “final bottom for $BTC.”
Analyst Toni Ghinea was equally cautious, telling them said to followers that the bottom of the BTC/USD pair would be between USD 11,000 and USD 14,000 and would arrive in the first quarter of next year.
“The bottom is 11-14k. Capitulation is in the first quarter of 2023,” he wrote, also including a bounce target of up to $30,000.
“Ignore the noise.”
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.