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Bitcoin below $20k during Powell speech, regarded as ‘bunch of nothing by community

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The Bitcoin price may see another dip under $20k as traders fear, with price targets seemingly set at $16,000.

Analysts kept price targets as of August 27 after Bitcoin BTC briefly fell below the $20,000 mark.

Market data indicates that BTC/USD hit $19,945 on Bitsamp after some predatory comments made by the US Federall Reserve. Intraday losses were as high as 9% along with the US equities faltering over the outlook on current inflation policy which may not cater to the “soft landing” idea anymore

“Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth,” Fed Chair Jerome Powell said in a speech at the annual Jackson Hole Economic Symposium.

He continued: “Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

The community did not take well to Powell’s speech as traders like Will Clemente took to twitter to voice their opinions.

A combined $1.25 trillion was lost by US stocks in a single session, totalling over the entire crypto market cap. Bitcoin surpassed $20k on the day, and is now hovering near $20,200. It is still closer to its one-month lows. Traders are now worried that this sudden relief will be followed by even steeper losses in the near future.

Il Capo of Crypto lso released another tweet in which he laid out short term relief targets between, $23,00, and $23,500. He also marked the lowsides as being anywhere from $19,000 to 16,000.

https://twitter.com/CryptoCapo_/status/1563434314507104257
Twitter account TraderSZ said that a $19,400 may be a potential bounce zone after this correction, and relief will likely open near $23,000 at the beginning of the new week.

“Moving higher resistance at $21,100. Support at $19850 followed by $19,200,” the Twitter account for trading suite Decentrader said.

In the wake of tumbling stocks, the US dollar index saw heavy losses but rebounded later in the day which putting it even closer to twenty-year highs.

August 26 saw the DXY at just near 108.9 which is an increase from its previous 107.6 just hours before.

“FED staying the course means $DXY maintains its trend which means assets trend down more,” analyst Kevin Svenson summarized.

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