The Bitcoin (BTC) market is anticipating Federal Reserve (Fed) Chair Jerome Powell’s address on Friday in Jackson Hole because of the similarities between the recent price movement and the run-up to the speech last year.
BlackRock is buying #Bitcoin, but why isn't the market showing strenght?
The simple reason is that they are acquiring #Bitcoin through miners, exchanges, and governments via OTC (over-the-counter) transactions.
This method doesn't directly influence the price of $BTC.
Don't be… pic.twitter.com/vhrAfV42Dq
— Crypto Rover (@rovercrc) August 23, 2023
Over the past two weeks, important moving averages have been tested and lost, followed by a consolidation phase that is reminiscent of earlier occurrences.
It’s crucial to remember that despite the similarities, market circumstances and Powell’s position have since changed, so a recurrence of the past is not a given.
Déjà Vu In The Bitcoin Market?
In the two weeks before Powell’s speech last year, the price of bitcoin (BTC) broke through important technical support levels represented by the 21-day, 50-day, 100-day, and 200-week moving averages (MA), according to Keith Alan, co-founder of analytical and crypto research business Material Indicator.
Is the Merge [Bitcoin ETF] Priced In?
I came out of recent business dinners and market calls with a strong sense of déjà vu. The discussion around “is the Bitcoin spot ETF priced in?” sounds a lot like the “is the Ethereum Merge priced in?” discussion from a year ago.
— Ilan Solot 🦇🔊 (@isolot) July 13, 2023
Keith Alan highlights that there have been significant changes since the Jackson Hole event last year. Core inflation has declined, and Powell has adopted a more “measured” style of communication.
Powell’s impending speech is expected to take either a hawkish or dovish position, making it difficult to forecast with precision how the market will respond. However, it is clear that the market is prepared to make a dramatic shift.
The creation of a lower price, according to Alan, further raises the possibility that the current decline will continue. Participants in the market should be ready for the prospect of further support level testing.
In the previous 24 hours, Bitcoin has shown a significant rebound of 2.1%, bringing it closer to the $27,000 barrier as the date of Jerome Powell’s return to Jackson Hole draws near.
Why #Bitcoin is likely to move away from $30,000 soon 👇👇
As of this writing, $BTC trades at $28,695 with sideways movement in the last 24 hours. Over the previous seven days, the BTC’s price saw a slight downtick recording a 2% loss.
Other tokens in the top 10 by market cap… pic.twitter.com/Tj2h0I0Ni1
— ArtiTicey (@artiticey) August 17, 2023
The 200-day moving average, which is located at $27,200, may be a big hurdle for Bitcoin if the conclusion of Jerome Powell’s speech on Friday proves to be favorable for crypto investors and drives the price of the cryptocurrency higher.