Analyst Says Bitcoin (BTC) Is Weak, But Crypto Markets Could Focus This Week After Fed Meeting
A prominent analyst is looking at how the upcoming Federal Reserve policy meeting will impact both Bitcoin (BTC) and the broader economy.
The anonymous InvestAnswers host told his 444,000 YouTube subscribers for the first time that all eyes will be on Chairman Jerome Powell during the three-day retreat at the Fed's Wyoming, noting that the market is likely to recover if interest rates do not rise again.
“We have to be really aware of the fact that Jerome Powell is in Jackson Hole at the economic conference. He will provide some desirable clarity about the market and the central bank's roadmap. This could be the most important catalyst of the week for stocks and cryptocurrencies. Remember, if we get a dovish sign, the market will recover. "
Analyst thinks that the Fed can only raise interest rates by a total of 1% or risk causing irreparable damage to the economy.
“Last time I read the minutes. Fed's, it's got so much wisdom, it could essentially interpret the Fed as slowing down their rate hikes, but don't get too excited. We're still in very limited territory. regime.
But my point remains: budgets are no more than 100 basis points left, and if they exceed that, it's financial debt. The next InvestAnswers organizer presents a Bitcoin channel chart dating back to mid-June. He observes how BTC was trending up in a range until a sharp drop last week, creating a bottom. dual.
“This is the channel you've seen me share many times over the past six weeks. From the bottom up, in, out, the rider drives the stunning range all the way up in the ascending channel.
We had a problem last week. I say it must support, otherwise can be ugly. We crashed through, but we fell to a very interesting level. We had that hit above $25,000 and then tapered off.
These are daily red candles and you can see how many red days we have had. But what is very important is the support around $20,750. "
The crypto expert noted that Bitcoin previously dropped to around $20,750 four weeks ago, also revealing a double bottom. He worries BTC might lose traction after the rally that started in late July was halted on Aug. 18. “We had that double bottom for the past five days. It corresponds to the bottom we had about four or five weeks ago, which is a positive sign that this $20,000, $21,000 support could hold.
But momentum is definitely waning right now for Bitcoin, no doubt about that. We are out of that range. The question is what will happen now?
I predict for the next week or so, until we figure out what the Fed does, we'll probably go sideways. And if they give bad news, it could drop to $20,000.”
At the time of writing, Bitcoin is trading even and is priced at $21,506.
Aug 25, 2022