Bitcoin (BTC) held momentum at $38,000 on Nov. 29 as analysis warned over market corrections.
Bitcoin meets macro data, Fed’s Powell at key price point
Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory continuing to aim for new 18-month highs.
After matching current highs the day prior, the largest cryptocurrency surprised by keeping a grip on higher levels as futures markets hit $39,000.
Already a topic of debate, the excitement on derivatives led some to caution that large-volume traders could still leave late long positions stranded at the top.
In commentary overnight, Keith Alan, co-founder of monitoring resource Material Indicators, told traders to be wary of these “whale games.”
“Earlier today, some ask liquidity at $38k was pulled to open the door to $38.5k. Don’t allow yourself to think that was a friendly whale giving you boost. That was a Killer Whale trying to FOMO you in,” he wrote about the initial trip past $38,000.
Alan continued that words due Dec. 1 from Jerome Powell, chair of the United States Federal Reserve, may provide an external BTC price catalyst that could even bring $40,000 into play.
Whales, however, would be spying on a key level at which to sell off.
“My assumption is that they will continue to do so until there is enough to dump into,” he forecast.
“That doesn’t mean that # JPow’s speech can’t be the catalyst that sends price past $40k, especially as we see bid liquidity coming in above $37.5k, but if you aren’t prepared to sweep the local lows between now and then you haven’t been paying attention to how these Whale Games tend to play out.”
An accompanying chart showed order book sell-side liquidity concentrated at $38,500 — a level yet to be challenged at the time of writing.
Others remained confident that further short-term upside was possible and even likely.
Analyzing current market composition, popular trader Skew concluded that volume was all that was missing for a breakout toward the $40,000 watershed.
$BTC 4H Update
Trend still respected & clean HL exactly where I expected it to occur ($36.7K)Just need the HH now & volume supported break of $38K – $40K resistance https://t.co/iPPGzVIbFF pic.twitter.com/SQtKwvBdz0
— Skew Δ (@52kskew) November 29, 2023
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