FED Chairman Jerome Powell will attend the “Perspectives on Monetary Policy” panel at the Thomas Laubach Research Conference on Friday, May 19 at 18.00. Many Bitcoin (BTC) investors keep their eyes on Jerome Powell’s words! So, what could be the next levels for Bitcoin? Here are the details…
Bitcoin investors focused on Jerome Powell’s speech!
TradingView data shows that the BTC price level dropped as low as $26,380. As reported by Kriptokoin.com, many experts say that recent movements can be quite critical for Bitcoin, which has fluctuated throughout the week. However, a downward trend was observed throughout the night as market expectations that the US Federal Reserve would raise interest rates in June increased. These expectations were driven by low jobless claims data released during the week and Fed officials taking a hawkish tone. In his speech at the 2023 International Insurance Forum held in Washington, Board member Philip Jefferson said, “Inflation is very high and we haven’t made enough progress in reducing it yet.” However, many investors are locked into the BTC price.
On the other hand, while the FedWatch indicator showed the probability of the Fed’s interest rate hike to be over 95% for a while, this level decreased to only 62% during the day.
On the other hand, Material Indicators showed the holders of buying and selling liquidity to detect BTC price behavior in short time frames. However, the critical event that can affect the Bitcoin price is the FED speech that will take place today. With the tone of the conversation today, another rate hike could change price levels.
Material Indicators stated that BTC/USD has retested the 100-day moving average (MA) for the third time in the past seven days. The analysis concluded that in addition to the 100-day MA, the 200-week MA at $26,100 could also form the next downside support zone. However, Priority Indicators, referring to Fed Chairman Jerome Powell’s May 19 speech, implied that using more hawkish language on inflation would increase risky asset price pressure.
Will Bitcoin (BTC) drop to $25,000 levels?
According to a tweet published by Lookonchain earlier today, Bitcoin (BTC) dropped by about 3% to below $27,000 after a whale deposited 1,750 BTC on Binance. Whale deposited $48 million worth of BTC at the time of the transfer yesterday evening.
https://twitter.com/lookonchain/status/1659386132256411650
The blockchain tracking firm had predicted that the same whale would be able to sell all of its newly deposited assets shortly after the transfer was made, given that on April 21, 2023, only 5 hours before the price dropped by about 3%, it sent 5,791 BTC. According to Santiment, this recent drop in the market leader’s price has caused investors to become more worried that BTC will soon revisit the $20,000-25,000 range. The blockchain intelligence firm said in a recent tweet that the social dominance of BTC has risen again in the past 24 hours, and that increases in this off-chain metric are typically a product of fear.
On the other hand, according to CoinMarketCap momentarily, BTC continued to trade below $ 27 thousand. However, it has been able to recover somewhat since the whale’s sale, falling only 1.01% over the previous 24 hours. The weekly price performance of the leading cryptocurrency also managed to stay green with +2.82%.
The drop in BTC’s price caused it to drop below the 9 EMA lines and the 20 EMA lines on the 4-hour chart, which caused the two EMA lines to intersect, triggering a bearish flag. During this decline, BTC dropped as low as $26,374 but managed to retrace and close its 4-hour candle from $26.755 above the $26.5k support. Since then, the price of BTC has climbed to its current level and was looking to instantly turn the $27,000 level back to support. A confirmation that this is happening would be that the RSI line on the 4-hour chart is bullish above the RSI SMA line. If this cross occurs, BTC could climb to $27.8k in the next 24-48 hours. On the other hand, BTC’s failure to close today’s trading session above $27,000 will invalidate the bullish thesis. This will cause the price of BTC to test the $26,755 support once again.
Analysts’ predictions for BTC price
Investors, on the other hand, retained potential bearish targets, which focused broadly around $25,000. Eight founder and CEO Michaël van de Poppe was among them and identified $27,000 as the key support level for Bitcoin that is not currently on the chart.
Wanted #Bitcoin to hold above $27,000-27,200.
Didn’t happen, stopped out on my longs and in the waiting game now.
Reclaim that range, we’ll try again, or now we’ll be waiting for $26,400 sweep and/or $25,000.
— Michaël van de Poppe (@CryptoMichNL) May 18, 2023
On the other hand, another analyst who makes comments appears as Crypto Tony. Tony said, “I am looking for a long position if we can go above $27,500, and a short position if we close below $26,600. There are no transactions in this narrow gap.”
Finally, Decentrader points to the drab numbers when there are longs versus shorts in the market, and argues that a shift is necessary for its price to have a chance to reclaim higher levels.
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