The Bitcoin price surged on Tuesday to its highest level in three weeks. “much-needed rebound” The traders have been unable to “FOMO back in and expect higher prices,” According to Santiment, a blockchain analysis firm.
BitcoinBTCPrices jumped TradingView reported that Coinbase traded at a record high level of $94,625 during late Tuesday trading, the highest amount since Nov. 25, 2011.
Santiment said This has resulted in an explosion of calls on social media “higher” The following are some examples of how to get started: “above” across various platforms.
It has started to fall from that level and is now down to $92,400 as of this writing. This leaves analysts wondering about the next move.
“Markets move opposite to the small traders’ behavior,” Santiment noted that the price of oil has been rising in recent hours, following the monthly peak.
Bitcoin Volatility ahead of Fed Decision
Some analysts have warned that the recent rise in prices could be challenged when Fed meets on Wednesday.
CME Group’s futures market predicts that the Federal Reserve is likely to announce its rate decision this Wednesday. There’s a probability of an interest rate cut of 0.25 percent, with 88.6%.
“Bitcoin is likely rallying on rate cut expectations, but right now it’s difficult to say what will happen after tomorrow’s Fed meeting,” Jeff Mei told Cointelegraph that he is chief operations officer for the BTSE.
Related: BTC poised for December recovery on ‘macro tailwinds,’ Fed rate cut: Coinbase
Any hesitation in the future will be viewed as a negative. rate cuts Could be negative for Bitcoin and the crypto market. CME’s futures market predicts a 21,6% chance of another quarter point rate cut for January.
“The risk is that the Fed outlook could include hesitation to cut rates or stimulate the economy further for the risk of inciting inflationary pressures. This happened the last time the Fed cut rates and prices tanked afterward.”
“Any price action leading into FOMC is hard to read because tomorrow [Wednesday] will be very volatile,” agreed The Analyst “Sykodelic.”
Bitcoin Investors suggest recent price movement is fishy
Long-term Bitcoin Investors “NoLimit” told Their 53,000 X supporters that the move is “pure manipulation.” The sudden Bitcoin surge to $94,000 “doesn’t look organic at all,” He continued.
“People are celebrating, but if you zoom out for even 10 seconds, the move has all the fingerprints of a classic engineered pump.”
Analysts pointed out thin order books made it easy to drive prices higher. Massive market purchases were clustered in a matter of minutes and then there was zero further movement. “just immediate stalling.”
“This is exactly how big players create FOMO so they can offload at better prices.”
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Source: cointelegraph.com
