Bitcoin (BTC) remained steady near $17,000 when Wall Street opened on Dec. 12 as news on Binance failed to spark a downtrend in BTC price.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Factors are consistent to “spook” bitcoin trading.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD avoided fresh volatility as US markets open.
After trading sideways throughout the weekend, the pair offered few clues to analysts waiting for US macro data to shake the status quo.
This, in the form of the November Consumer Price Index (CPI), would still be a pivotal moment for crypto assets, they agreed, with the potential for significant ups and downs depending on the numbers due Dec. 13.
Subsequent events involving the Federal Reserve would also shape price action, they said.
Meanwhile, however, Bitcoin appeared to shrug off the news that the largest global exchange, Binance, was reportedly the target of a US money laundering lawsuit.
A report published by Reuters said the Department of Justice (DoJ) was undecided on whether to press charges against Binance and its CEO Changpeng Zhao following an investigation launched in 2018.
This followed fresh concerns about the exchange’s proof of reserves, which various commentators nevertheless dubbed “FUD” as it circulated in the media.
“Bitcoin remains stable, altcoins are depreciating, $BTC dominance is jumping up and currently recovering,” wrote Michaël van de Poppe, founder and CEO of trading firm Eight, in part of a summary of the day.
Van de Poppe noted that market participants were still “scared” due to upcoming macro data and legal events related to the FTX scandal.
Crypto sentiment generally remained stronger than the worst-case scenario, as shown by the Crypto Fear & Greed Index, which was 27/100 for the day – still above its “extreme fear” low zone.
Crypto Fear & Greed Index (Screenshot). Source: Alternative.me
Risk assets may bottom after Fed pivot
On the subject of short-term market moves, fresh bearish warnings emerged for both crypto and risk assets.
Also see: “Biggest Week of the Year” – 5 Things to Know in Bitcoin This Week
Popular trader Mustache turned to US equities to remind his followers that despite the potential turn to rate hikes, the Fed has not historically marked a turning point in performance.
“Don’t forget that every time in history the stock market has collapsed very violently AFTER the Fed’s pivot,” he commented alongside a chart.
“Possible that the market will rally on a pivot’s expectations. After the official announcement: Sell the news.”
He added that the result could be a “final bottom for $BTC.”
Analyst Toni Ghinea was similarly cautious, telling his followers that BTC/USD’s bottom would be between $11,000 and $14,000 and would come next year in Q1.
“Down is 11-14 thousand. Surrender is in Q1 2023,” he wrote, also including a bounce target of up to $30,000.
“Ignore the noise.”
Annotated BTC/USD chart. Source: Toni Ghinea/ Twitter
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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