The price of bitcoin (BTC) fell to daily lows on August 26as market nerves intensified over new macro triggers.
Pre-Fed Depression Affects BTC Markets
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to $21,332 on Bitstamp ahead of further comments from Jerome Powell, chairman of the US Federal Reserve.
On the sidelines of the Fed’s annual symposium in Jackson Hole, Powell was to deliver a speech that viewers hoped would provide new clues about future economic policy.
With the slowdown in inflation in the US Consumer Price Index (CPI) since June, Interest remains in the scope of interest rate hikes in September.
Summarizing the current economic situation in the US, macro analyst David Hunter argued that the Fed would have no choice but to change course before the year is out.
“There are many signs that we are in a recession and that the economy continues to slow down,” said to his Twitter followers this week.
“Composite PMIs are at 45, housing is moving fast, retail is weak, labor conditions are deteriorating. Abroad it is even worse. And inflation is moving and will probably surprise to the downside. The Fed will pause this fall.”
Nevertheless, According to CME Group’s FedWatch Tool, most are still in favor of repeating July’s 75 basis point rise.
Probabilities chart of the target interest rate of the Fed. Source
Bitcoin circles, meanwhile, kept an eye out for potential volatility. heading into this year’s Jackson Hole.
“We often see a spike in volatility just before Fed announcements, but that may be limited if some of the near-range liquidity doesn’t clear,” wrote the on-chain analysis resource Material Indicators in part of the comments of the day.
An attached chart shows the buy and sell levels on the Binance order book, which are strengthening closer to spot at the time of writing.which reduces the potential for a breakout.
continuing, Keith Alan predicted that an end to the sideways price action (PA) of the past few days would have to occur.
“PA will be forced to make a directional move out of the microstructure very soon,” explained.
“Normally I would be eager to scalp the volatility that is usually at the forefront of a JPow conference, but the R:R ratio in the active range sucks. You might consider scalping a break above the 50 MA.”
On the subject of price targets, Cointelegraph contributor Michaël van de Poppe pointed to $21,000 as a key level to hold in case of a further drop.
Secondly, Retesting $21,800 could result in a break above $23,000.
#bitcoin is boring, as we anticipate reactions based on tomorrow’s news (PCE numbers and Powell’s speech).
Overall, on a support block now and;
– Tomorrow can result in fake-outs.– Testing $21.8K will likely result in acceleration to $23.2K.
– Crucial to stay above $21K. pic.twitter.com/LYNRnHpnkh— Michael van de Poppe (@CryptoMichNL) August 25, 2022
Bitcoin is bored as we anticipate reactions based on tomorrow’s news (PCE figures and Powell’s speech). In general, in a block of support now and;
– Tomorrow may lead to false positives.
– Testing the $21,800 level will likely result in an acceleration towards $23,200.
– It is crucial to stay above $21,000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
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