Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is fending off fresh volatility as US markets open.
After trading sideways all weekend, the pair provided few signals for analysts, who were waiting for US macroeconomic data to change the status quo.
They agreed that this, in the form of November’s Consumer Price Index (CPI) print, would nonetheless be a pivotal moment for crypto-assets, with the potential for significant upside and downside contingent on the numbers, due to December 13th.
Subsequent events involving the Fed will equally shape price performance, they said.
Meanwhile, Bitcoin seems to be shrugging off the news that the world’s largest exchange, Binance, has been the target of a US money laundering lawsuit.
A report appeared in Reuters, stating that the Department of Justice (DoJ) has not decided whether to file charges against Binance and its CEO, Changpeng Zhao, after an investigation that began in 2018.
This followed fresh concerns about the exchange’s Proof of Reserves, which many commentators nonetheless dubbed a “FUD” because it was spread through the media.
“Bitcoin remains stable, altcoins lose value, and BTC dollar dominance is bouncing back and currently surging,” Michael Van de Poppe, founder and CEO of trading firm Eight, wrote in part of today’s briefing.
Van de Poppe noted that market participants remain “scared” due to upcoming macro data and legal events related to the FTX scandal.
Broadly cryptocurrency sentiment remained stronger than the worst case scenario, according to the Crypto Fear & Greed Index, at 27/100 on the day – still above the “extreme fear” low.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
The bottom of risk assets may come after the Fed pivot
On the topic of near-term market action, there were fresh bearish warnings for both crypto assets and risk.
Related: “The Biggest Week of the Year” – 5 Things to Know in Bitcoin This Week
Popular trader Mustache turned to US stocks to remind followers that while the Fed is likely to focus on raising interest rates, historically this is not a turning point for performance.
“Don’t forget, the stock market has crashed so hard every time in history after the Fed pivot,” he commented alongside the chart.
“The market is likely to go higher, due to the expectations of the pivot. After the official announcement: sell the news.”
He added that the result could be “a definitive bottom for Bitcoin-dollar.”
Analyst Tony Guinea was similarly cautious, telling followers that the BTC/USD bottom would be between $11,000 and $14,000 and would come in the first quarter of next year.
“Bottom 11-14k. Surrender in Q1 2023,” he wrote, including a bounce target of $30,000.