The bitcoin (BTC) price remained within a tight range on May 20while cryptocurrency markets were oblivious to US macroeconomic triggers.
Powell leaves the market with “tons of uncertainty”
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was trading just below $27,000.
The pair had seen brief volatility after Federal Reserve Chairman Jerome Powell gave fresh comments on policy and the inflation outlook..
While he left the door open for a change should the need arise, Powell’s language did not offer clear signals to risk assets. In response, financial commentary resource The Kobeissi Letter warned that “tons of uncertainty” lie ahead.
SUMMARY OF POWELL SPEECH (5/19/23):
1. Inflation “far above 2% target”
2. Committed to getting inflation to 2%
3. Unclear if rates are “sufficiently restrictive”
4. Failure to lower inflation prolongs pain
5. Will “take time” to lower inflation
Tons of uncertainty ahead.
— The Kobeissi Letter (@KobeissiLetter) May 19, 2023
SUMMARY OF POWELL’S SPEECH (5/19/23):
1. Inflation “well above the 2% target”
2. Committed to bringing inflation to 2%
3. It is not clear if the rates are “restrictive enough”
4. Not lowering the inflation prolongs the pain
5. It will take “time” to lower inflation
Tons of uncertainty ahead.
Nevertheless, the bitcoin price soon forgot the event, returning to a known range from the previous weekend.
Assessing the climate on exchanges, popular trader Skew argued that a new volatility was only a matter of time.
“Increasing variance between perp and spot market, which I’ve posted about before,” he said in part of the day’s Twitter coverage.
“Very tight illiquid range here among post-Friday Fed speakers. Expecting the market to break even early next week where both the spot and perp markets are forced to trend.”
One more publication indicated that the first signs were there for the status quo to be disrupted.
$BTC Binance Open Interest
Minimal price movement yet, positions flowing into the market againAlways precedes a liquidity hunt especially in this current environment pic.twitter.com/exvwCTcci6
— Skew Δ (@52kskew) May 20, 2023
$BTC Open Interest on Binance
Minimal price movement, however, positions are flowing in the market again.Always precede a liquidity hunt especially in this current environment.
For his part, Crypto colleague Tony predicted that the range would hold until the start of the new macro trading week.
A close above or below the levels marked on an attached 4-hour chart, he added, would form cause for the market to reconsider.either.
I expect we will be in this range all weekend no doubt, bit we play the breakout if it does come today, tomorrow, next year…
Breakout plays are my favourite. We identify the range, set alerts and wait for the beast to break the cage ‼️ pic.twitter.com/1B7wB5uqCc
— Crypto Tony (@CryptoTony__) May 20, 2023
I expect us to be in this range all weekend, for sure, but we’ll play along with the break if it happens today, tomorrow, next year…
Break plays are my favorite. We identify the range, set alerts and wait for the beast to break the cage!‼️
Caution for a “big sell-off” of bitcoin
Others were bearish on the immediate future when it came to BTC price performance..
The popular IncomeSharks analytics account warned that a deeper correction was expected but should not materialize for another week.
“Waiting for another week of ‘chop’ before the big sale,” was part of the Twitter comment he stated the day before.
#Bitcoin – The red squiggles surprisingly accurate so far. Double rejection on the 4h supertrend. Expecting another week of chop before the big sell off. That’s when I’ll jump back in, when Twitter thinks we are going back to zero pic.twitter.com/hakZMRmdGU
— IncomeSharks (@IncomeSharks) May 19, 2023
Bitcoin: The red scribbles are surprisingly accurate so far. Double rejection in the supertrend at 4 hours. Waiting for another week of ‘chop’ before the big sale. That’s when I’m going to jump back in, when Twitter thinks we’re going back to zero.
Trading resource Stockmoney Lizards agreed, predicting a breakout was coming while referencing the “head and shoulders” pattern discussed in trading circles in recent weeks.
“Correction in game”, saidoffering a target zone around $24,500.
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