30s Summary

Bitcoin’s value experienced a further slide, touching the lowest levels in December due to the effects of market leverage. However, the Bitcoin/USD rates bounced back to just above $96,000. Market analyst, Rekt Capital, believes this is an excellent opportunity to buy, with the likelihood of a price rebound very high. Over the past day, $1.4 billion in total cross-crypto liquidation was noted, ascribed to US influence. Meanwhile, Bitcoin and other cryptocurrencies are benefiting from lower US inflation rates. The January meeting of the FOMC projected a 10.7% chance of another interest rate cut.

Full Article

Bitcoin (BTC) was on the hunt for a break following the Dec. 20 opening of Wall Street, as a massive squeeze continued to take a toll on newbie crypto enthusiasts.

BTC’s value was poking at December’s lowest levels again, as the effects of market leverage kicked in. Data referred to by Cointelegraph Markets Pro and TradingView conveyed BTC/USD bouncing back past $96,000 on Bitstamp.

Although Bitcoin was still down 1.5% for the day, it was the ‘longs’ or those betting on BTC’s price to go up, who were hit hard as the market returned to the $92,000 lows from earlier in the month.

Commending on the base drop, Rekt Capital, a recognized trader and analyst, tweeted, “Bitcoin is now down -15% on this pullback.”

Rekt Capital had previously pointed out that Bitcoin often undergoes bull market corrections about six to eight weeks after hitting record highs, and noted that the current dip “almost matches” a similar one from last year.

Referring to downturns, Rekt Capital stated, “They usually last a few weeks,” and added, “Also, there tend to be up to 4 Price Discovery Corrections at most before a Bull Market ends. This is the first Price Discovery Correction in this cycle, which means it’s a prime buying opportunity with a high likelihood of a price rebound.”

In the last 24 hours, total cross-crypto liquidation was logged at $1.4 billion by monitoring resource CoinGlass. J. A. Maartunn, who analyses onchain analytics platform CryptoQuant, pinned the blame on the U.S. for the short-lived weakness in BTC’s price.

As per Maartunn, the selling pressure stood out on Coinbase, the largest US exchange. A Product offered by Coinbase showing the difference in BTC/USD pricing between Coinbase and Binance, the largest global exchange, was firmly in the negative.

Advising on this, fellow contributor at CryptoQuant, BQYoutube stated in a blog post, “When Coinbase Premium is negative = just stay on the sidelines, wait for the signals from the market,” and further added, “When Coinbase Premium turns positive = time to get back in the market, trade and hold.”

Meanwhile, Bitcoin and other cryptocurrencies were riding the wave of lesser inflation rates in the US. The Personal Consumption Expenditures (PCE) index, a favored inflation gauge for the Federal Reserve, recorded a lower-than-expected 2.4% compared to the predicted 2.5%.

The Kobeissi Letter, a trading resource, reacted to this data by stating, “While PCE inflation jumped, it jumped less than expected which provides markets with SOME relief.” Yet, it warned, “Still, it’s further confirmation that inflation is back on the rise. Expect a bumpy trip ahead.”

CME Group’s FedWatch Tool, which notes market expectations for future Fed policy, recorded a slight shift. The odds of another interest rate cut at the January meeting of the Federal Open Market Committee (FOMC) now stood at 10.7% compared to 8.6% a day earlier.

Please note: This summary is not financial or investment advice. Any investment or trading move entails risk, and readers are advised to perform their own research when making a decision.