However, the nonfarm payroll increase of 263,000 in November was way ahead of economists’ estimates of 200,000. This shows that the Fed’s anti-inflation efforts have not produced the desired result. Analysts believe the latest data may force the Fed to continue with its aggressive rate hikes in the next meeting.
Galaxy Digital CEO Mike Novogratz, while speaking with Bloomberg, said the real reason for Bitcoin’s fall from $69,000 to near $20,000 was the central bank’s series of rate hikes. He added that the collapse of Three Arrows and BlockFi and Celsius which were either poorly run or fraudulently run also hurt confidence in the sector. Novogratz scaled back on his previous forecast of $500,000 by 2027, saying that it may take longer.
Bitcoin has been trading in the upper half of the range between $15,460 and $17,568. This suggests that buyers are not booking profits near the resistance as they anticipate a breakout.
The bulls tried to clear the overhead hurdle at $17,568 on December 5 but the bears held their ground. A minor positive is that the bulls have not allowed the price to break below $16,791. This increases the likelihood of a break above the overhead resistance.
If that happens, the BTC/USD pair could challenge the resistance at the 50-day simple moving average (SMA). This level may again act as a minor hurdle but it is likely to be crossed. The pair could then rally to $20,000 and later to $21,500.
A break and close above the 50-day SMA could offer a buying opportunity but until then, it may be better to watch from the sidelines.
If the price turns down and breaks below $16,791, it will suggest that the pair may extend its stay inside the range for a few more days. The flat 20-day exponential moving average (EMA) and the relative strength index (RSI) near the midpoint also hint at a range-bound action in the near term.
Lastly please check out the advancement’s happening in the cryptocurrency world.
Enjoy the issue!
FEATURING IN THIS WEEKS EDITION
– Uno Farm
– Giving to Services
– Ecudor Token