Bitcoin Prices Tanking Down-Did Traders Miss Powell’s Comprehensive Speech?
FED Chair Jerome Powell’s speech acted as a catalyst as the prices witnessed a notable jump during the previous trading day
After a minor upswing, the BTC price began to plunge and marked the bottom around $22,600 and making every effort to regain beyond $23,000
The recent upswing came as a surprise as Fed Chair’s speech despite being hawkish positively impacted the value of Bitcoin
Bitcoin price somehow managed to rise slightly above $23,000 with minor gains of 2% to 3% soon after Fed Chair Jerome Powell addresses the post-meeting press conference. As usual, the BTC price rose quickly as fresh interest rates were introduced and plunged in no time after the following speech by the chairman.
Therefore, it appears that traders only considered a small sentence of his speech where he says, “the disinflationary process has started,” and became bullish on Bitcoin. He never said that inflation would get to 2%; rather, he said it would take more hikes and longer to lower the inflation rates. More hikes mean more strength for the USD, flashing bearish signals for the crypto space.
Presently, the BTC price action displays no specific price action as the bulls are unable to hold the price above $23,000, while the bears are failing to slash the price below $22,800. Hence, leaving the price in jeopardy, without indicating the possibility of the impending move.
Bitcoin price has been trading above the crucial support that is acting as strong support and offering a nice push in the times when it suffers a setback. The bulls are trying hard to uplift the price from the current levels, but in case the bearish action intensifies, the price could test the lower support region between $22,466 to $25,519. If the bulls fail to trigger a rebound, an acute bearish action may drop the price toward the next level, which is pretty distinct.
Therefore, the Bitcoin price that appears to have been trading within narrow regions is expected to kick-start a firm upswing shortly. Until then, the brawl between bears and bulls may continue, compelling the price to consolidate.