On Saturday, Bitcoin (BTC) was down 0.02%. After losing 0.63% on Friday, bitcoin ended the day at $17,133. Notably, BTC avoided returning below $17,000 for the second time since the FTX crash.
After a range-limiting morning session, bitcoin rose to a late afternoon high of $17,240. And when BTC failed to reach the first major resistance level (R1) at $17,318, Bitcoin fell to a recent hourly low of $17,104. However, after avoiding the first major support level (S1) at $17,005, BTC found late support to end the day flat.
Investor anxiety leaves ETH and BTC in narrow ranges
After higher-than-expected US inflation figures on Friday, market focus shifted to Tuesday’s US CPI report. Stronger-than-expected inflation figures may add uncertainty about the December Fed meeting.
Labor market conditions remain strong, inflation is rising and the services sector is better than expected. While recession fears have returned, the current economic environment supports another bullish move.
Tuesday’s US CPI report is likely to determine the outcome of Wednesday’s meeting, with a 75 basis point rate hike negatively impacting the cryptocurrency market.
Today, BTC and ETH found modest support, as investors continue to bet on the Fed’s pivot. According to FedWatch, the probability of a 75 basis rate hike is 21.8%, unchanged from the previous week.
In the last hour, we expect the NASDAQ mini index to guide investors, with BTC and ETH reconnecting to the NASDAQ exchange after the dust settled from the FTX crash.