After a day of losses, Bitfinex traders waited in an area between $44,500 and $46,000 on Tuesday, with spot pricing currently at $46,800.
As buyers line up to cash in on Wednesday’s Federal Reserve meeting, BTC may see its final day of decline. On December 14, bids on the key exchange Bitfinex began to rise, indicating that the market anticipates BTC/USD will rise.
It’s time to “sell the rumour, buy the news,” as the saying goes.
At the meeting, the Fed will provide vital information on the future of asset purchases — a type of quantitative easing (QE) — as well as inflation, and wagers on the impact on both crypto and traditional markets are mounting. According to data from Bitfinex’s order book, Bitcoin traders are looking for an opportunity to “buy the news.”
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
As previously noted, the Fed’s asset purchases are being tapered, thereby limiting the supply of “cheap” money, and speeding up the process might put pressure on risk assets like Bitcoin until policy returns. In the short term, though, a buy-up would reenact the events of last month’s inflation data release, giving BTC a noticeable but short-lived lift.
After a day of losses, Bitfinex traders waited in an area around between $44,500 and $46,000 on Tuesday, with spot pricing currently at $46,800.
“Think FOMC has a good chance to be a ‘sell the rumour, buy the news’ event,” analyst William Clemente added.
“Pair that with illiquid supply back at yearly highs and some large Bitfinex bids coming in. Just waiting for $53K to start bidding. Happy to miss some of the move and essentially pay for confirmation.”
Are Bitcoin traders still tenacious?
On-exchange order books, evidence of progressively bearish whales persists. Large-volume traders have been consistently selling since October, according to Material Scientist, author of the on-chain analytics site Material Indicators. Material Scientist wrote on Twitter, “They haven’t bought a single dip since October and have been straight-up TWAP-selling all this time.”
Some exceptions have made the news, and whales — the largest group of exchange participants — have shown interest in buying. Despite this, evidence shows that resistance to $60,000 is increasing with time. In a separate article, Material Indicators stated, “We have yet to see any of the BTC drops over the last month bought with true conviction.”