Bitcoin traders await FOMC, Powell as BTC price hits new 1-month high
Bitcoin (BTC) hit new one-month highs on Wall Street on the December 14 open on a day full of key events for the US Federal Reserve.
Bitcoin bullish with stocks into FOMC
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $18,126 on Bitstamp, beating $18,106 from the previous day.
US stocks rose as markets anxiously awaited feedback from the Fed after November’s consumer price index showed inflation slowed more than expected.
On December 14, a decision on rate hikes for the month was set by the Federal Open Market Committee (FOMC), along with a speech by Fed Chairman Jerome Powell.
The latter event tends to trigger significant volatilitywith pundits scrutinizing Powell’s language for hints about long-term economic policy.
“With the FOMC coming today, we are at a crucial stage,” popular trader Crypto Ed in summary in a Twitter thread.
“A swipe of 18.2k liquidity is what everyone is looking for. Max pain would be a god-like pump and leave everyone behind.”
However, Crypto Ed warned that an upward reversal for the US Dollar Index, combined with a gradual decline in stocks, would quell Bitcoin bulls’ euphoria.
“A disconnection would be nice, but unlikely,” he added.
Michaël van de Poppe, founder and CEO of trading company Eight, was generally more bullish on BTC.
“Markets fell from $20K to $15.6K due to the FTX collapse. We are currently trading at $18K, slightly higher than the June low,” he told Twitter followers in one of several posts.
“I understand the bearish thesis, but this is frankly a sign of strength for Bitcoin.”
Before that, Van de Poppe had granted upside target up to $18,300, with $17,200 to be held as support.
$12,000 BTC is waiting in the wings
Entertaining a bearish end to events, traders including Crypto Tony and Il Capo of Crypto went against the flow.
Related: Bitcoin Bear Market 70% Drop Kills BTC “Tourists” As Metric Screams Buy
For Crypto Tony, a trip as low as $10,000 was “not out of the question yet,” while Il Capo of Crypto produced an honest forecast of an imminent capitulation.
“Simple,” he commented along with a chart that provides $12,000 as a support zone to cushion the fall.
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