Bitcoin
Bitcoin Price Sinks Below $26K Post Powell’s Jackson Hole Remarks
Bitcoin price dipped below the crucial level of $26,000 on Friday in the wake of hawkish comments by the US Federal Reserve Chair Jerome Powell. The digital asset has been trading sideways for the past few days amid economic uncertainty and a decline in risk appetite. Bitcoin’s total market capitalization has plunged further over the past day to $506 billion, while the total volume of BTC traded over the same period fell by more than 12%.
Fundamentals
Bitcoin price has posted significant losses over the past few weeks as economic jitters and a decline in risk appetite continue to weigh on crypto prices. The global cryptocurrency market has also been on a steep decline, with major altcoins, including Ethereum, falling to their lowest levels in months. The global crypto market cap has crashed to $1.05 trillion over the past 24 hours, while the total crypto market volume decreased by 13.39%. Bitcoin’s dominance has also declined over the same period.
The Crypto Fear and Greed Index, which measures the sentiment of the crypto market participants, has moved to a fear level of 34, hinting at a decline in risk appetite. As such, investors are likely to sell their crypto holdings irrationally, thus entering conservation mode.
The main catalyst behind this week’s cryptocurrency selloff is the hawkish comments by Federal Reserve Chair Jerome Powell. Speaking at the annual Jackson Hole symposium in Wyoming, Powell said that inflation was still too high despite progress, warning that further interest rate hikes could be yet to come. He noted that the Fed will remain vigilant as it contemplates its next moves, giving little indication that it’s ready to start soon. According to the CME FedWatch Tool, there is a 20% chance of the Fed hiking its interest rates in its next meeting in September.
“Although inflation has moved down from its peak — a welcome development — it remains too high… We are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” Powell said.
Bitcoin Price Technical Analysis
Bitcoin price has been trading sideways for the past few days, moving between the tight range of $26,000 and $26,300. The digital currency has lost more than 11% in value in the month to date but remains 57.48% higher in the year to date. Bitcoin remains below the 50-day and 200-day exponential moving averages as seen on the daily chart.
Its Relative Strength Index (RSI) is in the oversold region at 25, indicating an increase in selling pressure, while the Moving Average Convergence Divergence (MACD) indicator remains in the red. The Bollinger Bands have widened, pointing to a higher volatility, making the asset riskier.
Therefore, the Bitcoin price is likely to continue falling in the short term as bulls struggle to gather momentum to push the price higher. As such, the next support levels to watch are $25,800 and $25,300. Conversely, a move above the 200-day EMA at $27,265.50 might pave the way for further gains.
BTC Price Chart
Bitcoin price was hovering around its highest level since August on Monday ahead of comments by Fed Chair Jerome Powell that could offer clues on future interest rate moves. The premier cryptocurrency hit an intraday high of $25,580, slightly above the bullish support level of $28,145, before pulling back. At the time of writing, Bitcoin was trading at $28,098.
Crypto Rally
Bitcoin price was in the green on Monday, building on previous gains after jumping more than 3% over the weekend. The asset’s total market cap has jumped by nearly 4% over the last day, while the total volume of BTC traded over the same period climbed by 192%. Major altcoins, including Ethereum, BNB, XRP, Solana, and Cardano, among others, have also edged higher.
Cryptocurrency prices started the new month on a positive note, improving market sentiment. The global crypto market cap has increased by 2% over the past 24 hours to $1.11 trillion, with the total crypto market volume up by 39.50% for the same period. Bitcoin’s total market cap has also nudged 0.77% higher to 49.57%.
The Crypto Fear and Greed Index, which measures the crypto sentiment by market participants, improved slightly to a fear level of 47, slightly higher than the fear level of 34 recorded last month. As such, the index suggests that risk appetite is rising, and a breach above the neutral level could increase the buying pressure.
While the immediate catalyst…
Bitcoin price has been relatively stable over the past few days after volatility picked up during the weekend, pushing the price lower by more than 3%. At the time of writing, the flagship cryptocurrency, Bitcoin, was trading at $26,255.55. As it continues to dominate the crypto market, ranking 1st, its total market capitalization slightly declined over the past day to $5.12 billion. Additionally, the total volume of BTC traded over the same period slumped by more than 32%.
Economic Concerns
Data published on Tuesday showed that the Conference Board Consumer Confidence Index declined in September to 103.0, down from a revised 108.7 in August. This was its lowest level since May 2023 and marked two consecutive months of decline. The Present Situation Index, which measures consumers’ assessment of current business and labor conditions, rose slightly to 147.1 from 146.7.
The Expectations Index, which measures the consumers’ near-term prospects for business, income, and labor market conditions, dipped to 73.7 in September, down from 83.3 in the prior month. The Expectations Index fell below the crucial level of 80, which signals a recession within the next year. Consumer fears of a looming recession also ticked higher in September amid the short-term economic contraction anticipated in the first half of 2024.
Focus will be on Fed Chair Jerome Powell’s speech on Thursday which is likely to add volatility and create a bearish environment for traders. As such,…
Bitcoin price jumped more than 3% on Monday, hitting its highest level since August 2023 ahead of the highly anticipated FOMC meeting. At press time, the premier cryptocurrency was trading 2.70% higher at $27,244.20. The digital asset has gained nearly 5% in the month to date and 64.71% in the year to date. Bitcoin’s total market cap has climbed by 3% over the past 24 hours to $531 billion, while the total volume of the asset traded over the same period increased by almost 100%.
Fundamentals
Bitcoin price was showing signs of recovery on Monday from the losses made in the last cryptocurrency market dip. Bitcoin flipped above the important level of $27,000, while Ethereum held above important support levels. The overall cryptocurrency market was in the green with the global crypto market cap up by 2% to $1.08 trillion for the day, while the total crypto market volume increased by more than 56%.
Even so, the Crypto Fear & Greed Index, which is a major measure of the crypto market sentiment by participants, was in a fear level of 38, almost like last week’s reading. This points to a continued decline in risk appetite by investors, which could prompt them to sell further.
Despite Monday’s bullish rally, interest rate decisions due later in the week may introduce downward pressure on cryptocurrencies. The US Federal Open Market Committee (FOMC) is slated to commence its…
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