Crypto analysts indicate that Bitcoin may not be able to recover from the historically high gains it made in November, and could instead trade sideways.
“The current macro backdrop easing policy, but mixed communication from the Fed, supports consolidation as a necessary stabilising phase before volatility can expand again,” Bitfinex Analysts said In a Tuesday market report.
Analysts added Federal Reserve Chairman Jerome Powell “hinted at uncertainty” The Fed may cut rates by another 25 basis points when it meets in December.
Fed Rate Cut Odds at Less Than 70%
The odds for the previous two-month cuts hovered around 90%, but now the market sees only a 67.9% likelihood of another reduction at the Fed meeting on Dec. 10. according CME Federal Watch Tool
Crypto is generally bullish as Fed rate reductions and the expectation of more cuts will encourage investors to move away from safer assets such as bonds and term deposits in search of better returns.
Crypto market participants could be frightened by any sign that the Fed reverses course.
Bitfinex analysts have said that Bitcoin is (BTCIf the price does not return to $116,000, optimists might start losing patience. “They are showing signs of waning conviction,” The analysts pointed to ongoing sales amongst long-term shareholders.
“Unless the price recovers decisively above this range, time becomes a growing headwind for bulls.”
Bitcoin was trading at $103,000 as of the publication date, down nearly 3% in the last 24 hours. according CoinMarketCap.
But not all experts are expecting a slowdown in the price of Bitcoin, since November is historically a month when Bitcoin has seen hefty gains.
Bitcoin is at its strongest in November
Bitcoin is up 41.78% on average since 2013. according CoinGlass. Some analysts believe that history is repeating itself.
Dave Weisberger is a Crypto trader said Bitcoin’s “fundamentals are strong.”
“Context is VERY constructive relative to previous’ cycles’ and we are at the BOTTOM, not the top of the range, relative to other financial assets,” He said.
Related: Bitcoin price fills CME gap, but ‘$240M market dump’ stops a $104K rebound
Crypto analyst Carl Runefelt said On Tuesday I posted a X. “November will turn green again for Bitcoin soon.”
“Those big green candles are coming,” He said.
AshCrypto, a cryptocurrency trader is similar. said He remains “still bullish.”
Bitcoin is still struggling to recover from the October 10 crash, which saw the loss of around $19 billion in leveraged positions The crypto market has exploded.
Magazine: If the crypto bull run is ending… it’s time to buy a Ferrari: Crypto Kid
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
