Bitcoin Eyes 10% November Gain, A First Since 2020

• Bitcoin price is up nearly 10% in November, on pace for its best monthly performance since November 2020 despite fresh macro data.
• The latest PCE inflation data came in line with expectations, reinforcing the Fed’s monetary tightening path. However, the market remains focused on the monthly Bitcoin chart close.
• Bitcoin’s relative strength index (RSI) shows bullish divergence, indicating potential for further upside if price holds current levels through the monthly close.

The cryptocurrency market brushed off fresh United States macro data into the Nov. 30 Wall Street open as traders focused on the monthly close.

PCE Data Keeps Pressure on Fed Pivot Alive

Data from Cointelegraph Markets Pro and TradingView showed BTC price movements sticking to a narrow intraday range below $38,000.

After a failed breakout the day prior, hopes were high that the Federal Reserve’s “preferred” inflation metric, the Personal Consumption Expenditures (PCE) Index, would help fuel volatility. This, however, had not come to pass at the time of writing, with November’s final Wall Street open still to come.

PCE came in broadly in line with expectations — a boost for the Fed’s monetary tightening and reinforcement of declining inflation.

Querying whether interest rates might now begin to fall — the key takeaway for risk assets — financial commentary resource The Kobeissi Letter nonetheless stayed cautious.

November BTC Price Gains Near 10% Despite Macro Environment

For Bitcoin market participants, however, the monthly close was of more interest.

BTC/USD was up nearly 10% in November at the time of writing, making it the first “green” 11th month of the year since 2020. Above $37,660, the close would become its highest since May 2022.

In November 2021 and 2022, Bitcoin fell 7.1% and 16.2%, respectively, per data from statistics resource CoinGlass.

Analyzing the current chart setup, popular trader Jelle saw reasons to be bullish in Bitcoin’s relative strength index (RSI) readings.

“After spending the past month building up a giant hidden bullish divergence, Bitcoin has breached its RSI downtrend!” he told X subscribers earlier on the day.

An accompanying chart showed the required area for bulls to secure. “If price can hold the grey box, I think this starts moving higher soon. All eyes on the monthly close,” Jelle added.

Conclusion

Despite the latest PCE data, Bitcoin continues its upward trend in November and is on pace for its best monthly performance since mid-2022. The monthly close will be an important indicator to watch as traders assess Bitcoin’s short-term outlook.