(MENAFN- Crypto Breaking) Crypto markets enter a cautious phase in November, as analysts suggest Bitcoin 's recent price strength may be cooling off, with potential sideways trading rather than the anticipated rally. Recent signals from the Federal Reserve and macroeconomic factors are contributing to market uncertainty, prompting traders to reassess their outlooks amid mixed signals about future monetary policy actions.

• Bitcoin shows signs of weakening after reaching all-time highs, with the price currently around $103,000.
• Federal Reserve's policy stance injects uncertainty, with market odds of a December rate cut dropping below 70%.
• Historically, November is a strong month for Bitcoin, but current market conditions suggest a cautious approach.
• Long-term investors are growing less confident as Bitcoin's price struggles to reclaim previous highs.
• Analysts remain divided, with some expecting a bullish rebound and others cautioning against premature optimism.

Bitcoin's recent price trajectory indicates a potential pause in its upward momentum, with analysts warning of a sideways trading phase amid ongoing macroeconomic uncertainty. The cryptocurrency has declined nearly 3% over the past 24 hours, trading at around $103,000, as investors grapple with the broader economic environment shaped by mixed signals from the Federal Reserve.

Markets are closely watching the Fed's upcoming interest rate decision, with the CME FedWatch Tool assigning just a 67.9% probability of a rate cut at the December 10 meeting - a notable drop from earlier expectations near 90%. While rate cuts generally support bullish sentiment for cryptocurrencies, including Bitcoin and Ethereum, any indication that the Fed might hold or reverse course could unsettle markets that have grown accustomed to easing policies.

Bitcoin has fallen by 11.09% over the past month. Source: CoinMarketCap

Despite the recent dip, some crypto analysts remain optimistic. Bitcoin proponents note that November has historically been one of the strongest months for the flagship cryptocurrency, with an average gain of nearly 42% since 2013. Trader Dave Weisberger emphasized that Bitcoin's fundamentals remain strong, citing that current levels are near the bottom of recent cycles, suggesting a potential rebound could be on the horizon.

“Context is VERY constructive relative to previous cycles, and we are at the bottom, not the top,” Weisberger said.

Meanwhile, other experts like Carl Runefelt believe that the November rally is just around the corner. In a recent post, he asserted that“November will turn green again for Bitcoin soon,” hinting at upcoming bullish momentum. Similarly, trader AshCrypto expressed a bullish stance, remaining optimistic despite current volatility.

Nevertheless, Bitcoin has yet to recover from the early October crash that erased approximately $19 billion in leveraged positions, dropping from a peak of $125,100 to current levels. The market remains cautious as investors wait for clearer signals that the current pullback has run its course.

As the month progresses, market participants continue to debate whether Bitcoin's recent lows are a foundation for a new rally or a sign of extended consolidation. With macroeconomic factors still uncertain, the outlook for cryptocurrency prices remains a key focus in the evolving landscape of crypto regulation, DeFi, and NFT markets.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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