Bitcoin (BTC) remains under pressure at $28,500 after Wall Street opened on October 19, ahead of a major speech on U.S. economic policy.
Lepard: Powell could be ‘very dovish’
Data comes from Cointelegraph Markets Pro and trading view Showing that Bitcoin price action was strengthening ahead of comments from Federal Reserve Chairman Powell.
Powell will speak at the Economic Club of New York at 12 noon Eastern time on Thursday. He faces a complex macroeconomic situation, with the U.S. ten-year bond yield reaching its highest level since 2007.
With the specter of the 2008 global financial crisis looming in the minds of market participants, the extent to which Powell’s comments were dovish or hawkish has become a focus of discussion.
“They can’t let the bond rout continue,” said asset management guru Lawrence “Larry” Lepard Tell There are X subscribers that day.
“Prediction: Powell is about to say or do something very dovish, which will cause a sharp rebound in the U.S. bond market.”
The Fed was previously thought to be planning to extend the period of high interest rates after various data showed that inflation continued to exceed expectations.
According to the latest data from CME Group Fed Watch ToolStill, there is an 88% chance that market interest rates will remain at current levels at the next Federal Open Market Committee (FOMC) meeting on November 1, while the chance of further rate hikes is only 11%.
Speaking In a column on CNBC’s “Squawk Box,” economist Mohamed El-Erian said interest rates should not rise again — a more favorable outcome for risk assets including cryptocurrencies.
“The message now is that the Fed is done, we are done,” he said of the content of Powell’s speech.
“That’s what the message should be. Whether he gives it to me or not, I don’t know.”
Bitcoin traders monitor liquidity wall
Meanwhile, Bitcoin price action itself remains locked between liquidity clouds, reducing volatility as a result.
Related: Holding Hard: Long-Term Bitcoin Investors Own Over 76% of BTC for the First Time
#bitcoin Currently placed between two large walls of Binance Futures.
With funding rates trending downward, open interest has steadily increased.
Let’s see what we get when the New York market opens today! pic.twitter.com/nyLMQ07XFo
— Daan Crypto Trades (@DaanCrypto) October 19, 2023
data On-chain monitoring resource Material Indicators confirmed that the situation on the Binance order book remains unchanged, with important support and resistance levels unchanged after the volatility at the start of the week.
Therefore, traders pay close attention to the crossing of more important lines further away from the spot price. These include Crypto Tony, who highlighted $28,000 and $29,000 targets respectively.
Bitcoin USD / Dollar – renew
These are the key levels at which you focus on the legend.Therefore, if we break below the $28,000 low, $29,000 will turn into bullish support or bearish support pic.twitter.com/P5i3aA8FvE
— CryptoTony (@CryptoTony__) October 19, 2023
As Cointelegraph reported, key trend lines now provide support for bullish predictions for Bitcoin’s future, with buyer support continuing.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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