Bitcoin price taps $21.3K ahead of Fed Chair Powell Jackson Hole speech

As market nerves became more aggressive, Bitcoin (BTC), fell to daily lows Aug. 26, as bitcoin prices tumbled.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

BTC markets hit by pre-Fed blues

Cointelegraph Markets Pro and TradingView data showed that BTC/USD dropped to $21,332 via Bitstamp, ahead of new commentary by Jerome Powell (Chair of the United States Federal Reserve).

Powell was scheduled to give a speech at the Fed’s Jackson Hole annual symposium. This speech, spectators believed would offer new clues about economic policy moving forward.

Interest rates in September were high due to the slowing of U.S. Consumer Price Index, (CPI), inflation.

David Hunter, macro analyst at the Fed, stated that the Fed will have to make a change in order to improve the economic situation in America before the end.

He said this to Twitter followers that he saw “many signs” of recession and that the economy was slowing down.

“Composite PMIs at 45,housing rolling over fast,retail is weak,labor conditions are deteriorating.Overseas is even worse.And inflation is rolling over & likely will surprise on the downside.Fed will pause this fall.”

However, the FedWatch Tool by CME Group shows that a majority of respondents still favor a repetition of July’s 75 basis-point increase.

Chart showing the Fed’s target rates probabilities. Source: CME Group

Trading range endures

Bitcoin circles kept an eye out for volatility heading into the Jackson Hole this year.

Related: What is the Wen Moon? Not soon: Why Bitcoin traders should be friends with the trend

“We frequently see an increase of volatility just before FED announcements. But that may be limited, if some near-range liquidity doesn’t get cleared,” Material Indicators, an on-chain analytics resource Material Indicators said in part of the comments.

A chart was included that showed the buy and sell levels for the Binance order books. These were closer to spot at time of writing, decreasing the possibility of a breakout.

Chart showing the buy and sell levels of BTC/USD (Binance). Source: Material Indicators/Twitter

Keith Alan continued to predict that the end to sideways price action (PA), of recent days, would be necessary.

He explained that PA would be forced to move quickly out of the microstructure.

“Normally, I would be excited to scalp volatility that typically frontruns a JPow Conference. But the R:R ratio within the active range is sucks. You might consider scalping a breakout higher than 50 MA.

Michael van de Poppe, a Cointelegraph contributor, highlighted $21,000 as a key level that should be held in case of further downside.

A breakout above $23,000 could be possible if you test $21,800.

Boring is #Bitcoin because we expect reactions based upon tomorrow’s news (PCE figures and Powell’s speech). On a support block now, tomorrow could result in fake-outs. – Accelerating to $23.2K by testing $21.8K is likely. It is crucial to keep above $21K. pic.twitter.com/LYNRnHpnkh
— Michael van de Poppe (@CryptoMichNL) August 25, 2022com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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