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.

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.

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.

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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.

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.


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