bitcoin (btc) kept pressure on $28,500 after the October 19 Wall Street open ahead of a key speech on US economic policy.
Lepard: Powell may become “very moderate”
Data from Cointelegraph Markets Pro and TradingView showed btc price action gaining strength ahead of comments from Federal Reserve Chairman Jerome Powell.
Powell, who is scheduled to speak at the Economic Club of New York at 12:00 p.m. ET, faces a complex macroeconomic scenario with US 10-year bond yields at their highest level since 2007.
With the specter of the 2008 global financial crisis on the radar of market participants, the key talking point was the extent to which Powell’s language would be dovish or hawkish.
“They cannot allow the bond slide to continue,” said asset management guru Lawrence “Larry” Lepard said X subscribers in the day.
“Prediction: Powell is about to say or do something very dovish that will cause a massive rally in the US bond market.”
In the wake of several data releases showing inflation persisting beyond expectations, the Federal Reserve was previously thought to be planning for a prolonged period of high interest rates.
According to the latest data from CME Group FedWatch ToolThe market probability that rates would remain at current levels at the next Federal Open Market Committee (FOMC) meeting on November 1, however, was 88%, compared to a probability of just 11% in a new rise.
Speech On CNBC’s Squawk Box segment, economist Mohamed El-Erian suggested that rates should not rise again, a more advantageous outcome for risk assets, including cryptocurrencies.
“The message we must give now is that the Federal Reserve is finished; We are done,” he said of the content of Powell’s speech.
“That’s the message it should be. “Whether he gives it or not, I don’t know.”
bitcoin Traders Monitor Liquidity Walls
Meanwhile, btc‘s own price movements remained locked between clouds of liquidity, reducing volatility.
Related: Hodling hard: Long-term bitcoin investors own more than 76% of all btc for the first time
bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin It is currently taking place between two large walls in Binance futures.
Open interest is steadily increasing as funding rates trend downward.
Let’s see what we’ll get after the New York opening today! pic.twitter.com/nyLMQ07XFo
– Daan crypto Trades (@DaanCrypto) October 19, 2023
Data On-chain monitoring resource Material Indicators confirmed that the picture remains the same on Binance’s order book, with major support and resistance levels unchanged in the wake of the volatility that began the week.
Therefore, traders were on the lookout for crossovers of more significant lines in the sand further away from the spot price. Among them was crypto Tony, who highlighted targets of $28,000 and $29,000, respectively.
These are the key levels for you to keep an eye on for legends. So $29,000 becomes support for long or short positions if we lose the lows of $28,000. pic.twitter.com/P5i3aA8FvE
– crypto Tony (@CryptoTony__) October 19, 2023
As Cointelegraph reported, key trend lines now lend weight to a bullish forecast for bitcoin going forward, with lasting support from buyers.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
