Whale Buys Amidst Rate Hike Fears Suggest BTC Bear Trap Setup
A recent CPI figure revealed that US inflation rose 0.4% in August compared to July, leaving it comfortably above the Fed's 2% level at 3.4%. This suggests that a rate hike from the Federal Reserve is likely next week.
Major financial institutions now price in a rate hike, with Bank of America expecting a 75-bps increase. The FOMC meeting is just over 72 hours away, putting Bitcoin under the macro spotlight.
A 'bear trap' setup could be developing if Bitcoin holds its ground against this bearish backdrop. However, on-chain data shows that whales are accumulating BTC at an average price of $79,412.
According to CoinGlass, the Long/Short Ratio for the last 24 hours has dropped to 0.79, indicating a shift in sentiment among traders. This could mean that if Bitcoin were to hold its ground, it would be setting up a significant bear trap.