$16,500 stands as support as bitcoin price fluctuates
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to $16,736 on Bitstamp, a level not seen since November 30.
Thus the pair began to erase the ground it regained in the November monthly close, showing a heavy impact from Asian stocks before the opening of Wall Street.
The mood was tense today, with Hong Kong’s Hang Seng down 3.2% at the time of writing, Nikkei 225 and Shanghai Composite down 0.7% and 0.4% respectively.
Michael van de Poppe, founder and CEO of trading firm Eight, reacts: “Welp, there we go with Bitcoin, we couldn’t hold support and started to drop, just as the indices showed weakness.”
“I have been waiting patiently for a long time and we will continue to do so. Most likely; longing for about $16.5K valid or $16.9K refund.”
Meanwhile, the popular Twitter trading account Profit Blue was reveling in the prospect of a sharp drop in bitcoin prices in the future.
For fellow trader Elise, in the meantime it is time to wait for a resurgence of $16,500 for a long scalp trade.
A similarly optimistic view came from Bull, who looked to reclaim a potential $17,000 afterward in shorter timeframes.
Earlier, a survey of the Binance order book from on-chain monitoring resource Indices of Materials showed a growing support at $16,500.
BTC/USD order book data (Binance). Source: Material Indicators / Twitter
The consumer price index is already in focus
With the bitcoin markets still calm compared to the extreme volatility of November, analysts continued to look for macro signals to come.
Related: An ‘Imminent’ Stock Collapse? 5 things to know in bitcoin this week
This data was in the form of next week’s US Consumer Price Index (CPI), scheduled for release on December 13.
For trading firm QCP Capital, there was reason to believe that the numbers may favor riskier assets when it comes to lower inflation.
“With retailers struggling with inventory all year due to a consumer slowdown, they likely used Black Friday/Cyber Monday to offer amazing discounts in order to clear out inventory, which could affect the November CPI reading released next week,” the post posited. Its market update on December 5th.
QCP remained cautious about the stock’s potential for a sustained rally, however, with the crash causing more pain for correlated crypto assets.
“While many say Bitcoin and Ethereum are laggards and should play catch-up, we see them as stocks that have outgrown fundamentals and will soon be back,” she wrote.
The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.