Bitcoin (BTC) dropped to daily lows on August 26 as market nerves rose towards new macro triggers. Markets seem to be acting cautiously ahead of Jackson Hole.
Bitcoin hits ahead of FED Jackson Hole symposium
The data showed that Bitcoin price dropped to $21,332 ahead of Fed Chairman Jerome Powell’s new comment. Powell will also speak at the Jackson Hole annual symposium that the Fed will hold today. Many market participants expect the Fed chairman’s speech to impact BTC and the overall cryptocurrency market. However, as we reported on Cryptokoin.com, US CPI data shows that inflation in the country has slowed since June.
However, interest rate expectations are above the scope of the main rate hikes in September. Macro analyst David Hunter argued that the Fed will have no choice but to change course before the end of the year. “Many signs that we’re in a recession as the economy continues to slow,” he told his Twitter followers this week. However, according to CME Group’s FedWatch Tool, the majority still support a repeat of the 75 basis point increase in July in September.
Will Bitcoin volatility continue?
Meanwhile, Bitcoin circles have kept an eye out for potential volatility starting with this year’s Jackson Hole. On-chain analytics resource Material Indicators said, “We often see an increase in volatility just before FED announcements. “But it looks like it will be limited if some of the near-range liquidity is not cleared.” The attached chart shows the buy and sell levels in the Binance order book. These levels are gaining strength closer to the point at the time of writing. Thus, it signals a decreasing potential for a breakout.
“Watch these levels in BTC price”
Despite this continuing, Keith Alan predicts that the recent sideways price action (PA) should come to an end. “The horizontal move will soon have to make a directional move from the microstructure,” the analyst says. Famous analyst Michael van de Poppe also shares his comments on Bitcoin price targets. Accordingly, Poppe points to $21,000 as the key level to hold in case of additional downside. On the other hand, the analyst says that a retest of $21,800 could result in a breakout above $23,000.
“If this happens, the crypto market will recover”
Another name who analyzed Bitcoin and cryptocurrencies in the context of Jackson Hole was the pseudonymous crypto analyst InvestAnswers. The analyst stated that all eyes are on what Powell has to say today. According to him, markets will likely recover if interest rates do not rise again. The analyst says we can expect a rally in prices if Powell gives a dovish speech.
However, the analyst says the FED could increase rates by 1% overall. He argues that if it goes above that, it will show that the Fed has taken the risk of wreaking havoc on the economy. As for bitcoin price, InvestAnswers states that critical support is at $20,750. He says that BTC has visited this level 5 times in four weeks. He also points out that if the FED makes a negative statement, the price could drop to $20,000.
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