Bitcoin (BTC) briefly retreated to $17,000 on November 30 as monthly volatility loomed.
Trader: Monthly close $17,500 “most bullish result”
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD followed traders’ expectations to sweep higher levels before consolidating.
Highs of $17,072 appeared on Bitstamp, with the pair still unable to reverse the highs to support them. At the time of writing, Bitcoin was hovering around $16,900.
$17,000 marks a key range for the bulls to recover, Cointelegraph reported the day before, and until that happens the status quo remains.
“$BTC bulls want to hold 16.8k as the first countertrend S/R reversal. Returning to the bottom would represent a minor push,” popular Cheds analyst abstractrevealing shorts in the treble.
With hours to go until the monthly candle close, markets were expecting volatility to kick in, with losses after the November 27 weekly close already erased.
“Looking for a monthly close above 17.5k (June low) for the most bullish outcome here,” fellow analyst Credible Crypto wrote as part of a Twitter update.
At the time of writing, BTC/USD was down around 17.5% for the month of November, according to data from Coinglass.
BTC Price “Risk Events” Are Piling Up
The macro picture was flat on the day, with Asian stocks enjoying another day of strength ahead of Wall Street’s November 30 open.
Related: Bitcoin’s Capitulation Is 4th Worst Ever as BTC Hodlers Lose $10 Billion in One Week
Hong Kong’s Hang Seng was up 2.2% at the time of writing as the Shanghai Composite Index managed to recover its initial losses.
However, analyzing the outlook for December, trading firm QCP Capital outlined several “risk events” that Bitcoin holders should take note of.
These came in the form of US Consumer Price Index (CPI) data on December 13, coinciding with the initial hearing of US lawmakers on the FTX debacle.
The next day, the Federal Open Market Committee (FOMC) of the Federal Reserve is to set inflation expectations and policy.
“Thus, we believe that while further one-off shocks may not occur in a fear-filled market, continued deflation in the crypto market will continue well into next year as many are forced to continually sell assets to increase liquidity,” QCP commented in its latest Crypto Circular newsletter:
“It will probably only end at the end of Q2-Q3 next year, when the real economy will be hit hard by the overnight rate of 4.75% and the Fed is then forced to pivot. – freeing up much-needed liquidity that could then end up once again in the crypto markets.”
An additional potential catalyst for BTC price volatility, he added, would come through repayments to creditors of the defunct Mt. Gox exchange scheduled for January.
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