After the Fed meeting on December 15, the bitcoin price may complete the correction and start rising on the basis of “Sell The Rumor, Buy The News”.
Crypto investors are waiting for the Federal Reserve meeting to learn how quickly the central bank of the United States planned on unwinding its bond-buying program.
The Fed is likely to announce a faster tapering of bond purchases, but more pronounced concerns over inflation or an aggressive “dot plot” could roil markets.
“Overall, the market is in a wait-and-watch mode on the Fed outcome on Dec. 15,” said Jigar Trivedi, a commodities analyst at Mumbai-based broker Anand Rathi Shares.
BTC Traders are placing buy orders in the $44,500- $46,000 range, while at the time of writing, Bitcoin is trading above $48,600.
Analyst Michael van de Poppe expects a similar scenario.
Sell the rumour, buy the news.
— Michaël van de Poppe (@CryptoMichNL) December 14, 2021
A similar scenario emerges based on the analysis of the Bitfinex exchange BTC order book.
Bitfinex laying down bids
Retail selling into the lows ahead of FOMC Meeting with funding negative across the board
Feels like we're going to get a Buy The News event #Bitcoin $BTC pic.twitter.com/9Z69rJuL0T
— Zen (@Zen_Trades1) December 14, 2021
According to the Material scientist founder, the bearish sentiment still prevails among whales.
“Whales have not bought a single drawdown since the beginning of October and have only been selling lately,” he explained.
"WTF are those whales doing? Why aren't they buying more? Looks like they want to get out."
*3 months later*
"Oh…."
They've not bought a single dip since October and have been straight-up TWAP-selling all this time. pic.twitter.com/bQmUkXLgAB
— Material Scientist (@Mtrl_Scientist) December 13, 2021
On December 15 Biden administration will release the report on the dynamics of consumer prices for November. After the report, the Fed will summarize the results of the meeting and provide updated economic forecasts and after that, the press conference of the head of the Central Bank Jerome Powell will begin.
During his speech in the Senate on November 30, Powell refused to interpret the increase in inflationary pressures as “temporary.” He also pointed to the possibility of curtailing the buyout of bonds “several months earlier than expected.”
The prospect of a Fed tightening policy has pushed traditional markets and bitcoin towards a moderate correction.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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