?

BTC local high just before of FOMC

Post image
Published on

December 14, 2022

Key points:

  • BTC/USD touched $18,126 on Bitstamp, surpassing the previous day’s high of $18,106, according to TradingView.
  • U.S. stocks edged higher as markets eagerly awaited feedback from the Federal Reserve after November CPI data showed that inflation slowed more than expected.
  • Crypto Ed warns that a bullish move in the U.S. dollar index (DXY) combined with a gradual decline in the stock market will take the excitement out of Bitcoin bulls.
  • Traveling for just $10,000 is “impossible” for Crypto Tony, while Crypto’s Il Capo publicly predicts imminent capitulation.

Bitcoin hit a one-month high on Wall Street on Dec. 14, the day of the key Federal Reserve event.

BTC/USD 1-D chart. Source TradingViewBTC/USD 1-D chart. Source TradingView

U.S. stocks and Bitcoin are bullish on FOMC

BTC/USD touched $18,126 on Bitstamp, surpassing the previous day’s high of $18,106, according to TradingView.

U.S. stocks edged higher as markets eagerly awaited feedback from the Federal Reserve after November consumer price index (CPI) data showed that inflation slowed more than expected.

On December 14, the Federal Open Market Committee (FOMC) is scheduled to decide on a rate hike this month, while Federal Reserve Chairman Jerome Powell is due to speak.

The latter event tends to generate wild swings, with experts poring over Powell's language for hints about longer-term economic policy.

“With the FOMC taking place today, we are at a critical stage,” popular trader Crypto Ed concluded in a Twitter thread:

A sweep of 18,2k liquidity is what everyone is looking for. Max pain would be a godlike pump and leaving everyone behind.

Still, Crypto Ed warns that a bullish move in the U.S. dollar index (DXY) combined with a gradual decline in the stock market will take the excitement out of Bitcoin bulls.

"Decoupling would be nice, but unlikely," he added.

U.S. dollar index (DXY) 1-D chart. Source -TradingViewU.S. dollar index (DXY) 1-D chart. Source -TradingView

Michael van de Poppe, founder, and CEO of trading firm Eight is generally more bullish on BTC.

“The market dropped from $20K to $15.6K due to the FTX crash. We are currently trading at $18K, just above the June low,” he told the Twitter follower in one of several posts that day.

I understand the bearish thesis, but this is honestly a sign of strength for Bitcoin.

Previously, Van de Poppe had given an upside target of up to $18,300 and held $17,200 as support.

$12,000 in BTC awaits

Traders like Crypto Tony and Crypto’s Il Capo bucked the trend for the day, celebrating the bearish end to events.

Traveling for just $10,000 is “impossible” for Crypto Tony, while Crypto’s Il Capo publicly predicts imminent capitulation.

BTC/USD chart. Source - Il Capo of Crypto [Twitter]BTC/USD chart. Source - Il Capo of Crypto [Twitter]

“Simple,” he commented, with the chart showing $12,000 as a support area to support the decline.


From the blog

The latest industry news, interviews, technologies, and resources.

Comprehensive Btcman guide to show the perks and propositions of pragmatic play providerūüí≤One of the most famouse in the casino gaming industry

Overview on slots, bonuses, software and features of Pragmatic Play

Comprehensive Btcman guide to swing trading crypto strategies, bots, taxes, platforms, and indicators for profiting from medium-term price moves.

Photo of Swing Trading Crypto ‚ě§ Riding the Waves for Profit