According to statistics provided by CoinGecko, the Bitcoin to United States Dollar exchange rate (BTC/USD) has reached an intraday low of approximately $21,376 spanning currency transactions. This follows a rejection near $21,800, and it suggests that further deterioration could take the currency approaching new seven-day lows below $21,000. If bulls are unable to hold the $20,000 zone, further suffering is likely to follow.
In a nutshell, that is the price forecast for Bitcoin before the statement that US Federal Reserve Chair Jerome Powell will give at Jackson Hole.
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Bitcoin price: analyst perspectives before the Jackson Hole conference
The Jackson Hole discussion is an annual event that traditionally coincides with higher market volatility due to the high level of anticipation surrounding the highly anticipated remark. The discussion brings together central bankers, economists, and other prominent policymakers.
For example, the S&P 500 index already accounts for the widespread belief that the Federal Reserve would lower interest rates over the course of the next few months before reversing course later in 2019. It is a situation that saw the share price monitoring big rallies from June’s lows, with pricing seen as stabilizing and a softening Fed seen as one that provides fresh legs for bulls in the market.
As a result, just like the equity markets, Bitcoin prices could rise if the Chair of the Federal Reserve hints at lower interest rates following September’s rate hike.
The chief executive officer of Hedgeye Risk Management, Keith McCullough, has stated that “anything dovish” might cause Wall Street to pump.
However, if the Federal Reserve decides to continue increasing interest rates for an extended period of time, then the markets would most certainly respond negatively during the next several days.
If this scenario plays out, it is highly possible that profit forecasts will be affected, and the gains that the S&P 500 has made over the course of the previous month, for example, would be erased in the upcoming weeks as volatility pushes risk assets lower. The stock market should have the appropriate response to this situation on Monday when trading begins, according to Tar, a market analyst.
The bulls need to maintain control above $20,000
BTC has been trading above the $20,000 mark for weeks, and this level has served as a strong support for the cryptocurrency during the latest sell-off from $25,000. Although a collapse to the lows seen in June is still conceivable given the present macroeconomic scenario, some economic analysts agree that the range will continue to act as a powerful cushion.
Carl Runefelt, a Bitcoin analyst, stated that BTC appears to be weak on the 4-hour diagram, and that it risks collapsing to $20,800, which would eventually open up a path for further declines towards the $20,000 level or lower. Runefelt also stated that this downward slide could open up an avenue for any further downturn towards the $20,000 level or lower.
Bitcoin has experienced a loss of 1.3% over the course of the last twenty-four hours, while US stock futures are also currently trading down as the markets wait for remarks from the Fed Chair.
Invezz was the first publication to provide you news about the Bitcoin price prognosis before Powell’s address in Jackson Hole.