As a seasoned researcher with over a decade of experience in the financial markets, I have seen my fair share of market fluctuations and economic cycles. The recent surge in Bitcoin price following Jerome Powell’s speech at the Jackson Hole Symposium was a fascinating spectacle to observe.
During the American trading session on Friday, the price of Bitcoin (BTC) gained momentum in its upward trend following Fed Chair Jerome Powell’s speech at the Jackson Hole meeting. Despite a relatively accommodative stance from the Federal Reserve, global markets—such as stocks and cryptocurrencies—showed optimism due to anticipated liquidity increases as we approach year-end, which has encouraged investors.
Bitcoin Price Market Movers: Powell’s Jackson Hole’s Speech
On Friday, Bitcoin’s price surged by 4.6% for the day and an impressive 6.6% over the past week, reaching $63,323. This upward trend was largely influenced by anticipation surrounding Federal Reserve Chair Powell’s speech at the Jackson Hole Symposium in Wyoming. The markets showed signs of a rally, suggesting a significant short squeeze, as traders scrambled to buy up shares they had previously sold short. Here are the key points:
- Jerome Powell takes a dovish outlook, saying, “The cooling in labor market condition is unmistakable.” This follows July’s nonfarm payroll report, signaling a possible US recession.
- The Fed believes the labor market is “unlikely to be the source of elevated inflationary pressures anytime soon.” Meanwhile, the nonfarm payroll revision marked the largest downward revision since 2009. The actual nonfarm payroll growth from April 2023 to March 2024 was revised downward by 818,000, or nearly 30%, from the initially reported 2.9 million.
- The Fed does not anticipate any further cooling in the labor market. In other words, Powell does not expect a recession. He was compelled to say that it was time for a policy change. “The direction of travel is clear, and the timing and pace of the rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” Powell added.
- The Fed argued that it intends to do everything to ensure a strong labor market and price stability. All eyes are now on the economic data in September, including August’s CPI and nonfarm payroll, which may help determine the magnitude of the rate cuts.
BTC Price Analysis: BTC Targets $70,000
The optimistic forecast for Bitcoin’s price increase over the weekend is primarily due to Powell’s speech and a breakout from a four-hour trading range triangle formation. If this momentum continues, it could lead to a 13% growth, nearing the $70,000 milestone and potentially sparking fear of missing out (FOMO) and an extended surge towards its all-time high (ATH).
Traders are likely to boost their investment in Bitcoin as they anticipate a significant event – the intersection of the 20-day and 50-day Exponential Moving Averages (EMAs). Key levels to watch before reaching $70,000 are the resistance zones at around $64,000 and $66,000. Overcoming these barriers will strengthen the bullish trend and raise the probability of Bitcoin price surpassing $70,000.
According to this Bitcoin price forecast, traders should maintain a cautious optimism, as there may be temporary pauses at around $64,000 or $66,000. However, before the first interest rate reduction is confirmed by the Federal Reserve, market turbulence due to liquidity issues could persist in global markets, including cryptocurrency. Yet, these dips are likely to present profitable opportunities as we move forward.
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2024-08-23 22:59