Bitcoin price is hovering roughly around $17,100 on Thursday, data from Cointelegraph Markets Pro and TradingView shows.
With a daily gain of almost 4.5%, the market-leading cryptocurrency can successfully prevent the weak end of the month from causing new losses.
Nevertheless, November recorded a big minus of 16.2%, which also marks the worst month since 2019.
The good mood among investors is therefore more likely to come from the most recent statements by US Federal Reserve Chairman Jerome Powell, who for the first time announced that interest rate hikes could be reduced again as early as December.
"Monetary policy affects the economy and inflation with a lag, so we haven't seen the full effect of our tightening," Powell said. To which he adds:
"Accordingly, it makes sense to adjust the rate of our increases as we get closer to the level needed to reduce inflation." The time for such adjustments could come as early as December.”
However, the head of the central bank is cautious as usual when it comes to a complete reversal of the previous monetary policy.
“As we continue to tighten, the timing of this adjustment is far less important than how far we need to raise interest rates to get inflation under control, or how long we need to hold them to get the desired outcome ' the central bank governor continued.
Nonetheless, the stock market has already responded positively to the announcements, with the S&P 500 and Nasdaq Composite Index up 3.1% and 4.4%, respectively, similar to Bitcoin.
Traders remain cautious
However, crypto experts are also cautious about the prospects after today's gains.
Crypto Tony, for example, warns that bulls are now “getting cocky” and that it is not yet the right time to buy blindly.
"Now is not the time to go all in as we are forming the bottom," the analyst tweeted . And further:
"What we're still missing: A higher high and a higher low (reversal in market structure), massive bullish trading volume, buying on the upside, the completion of the previous correction."
Thus , an important level to hold in order to create this reversal in market structure is the $16,700 level.
Cointelegraph contributor Michaƫl van de Poppe echoes this sentiment , also emphasizing the importance of the $16,700 area.
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