Bitcoin Rebounds to New Weekly Highs Amid Anticipation of Federal Reserve Speech
Summary:
Bitcoin (BTC) has recorded new weekly highs after the Wall Street opening on September 28, with investors watching for signals from the U.S Federal Reserve. Despite a turbulent 24 hours, BTC has shown recovery alongside positive responses to U.S. macroeconomic data. Traders and analysts signal emerging volatility and highlight key resistance trendlines that Bitcoin needs to break for substantial trend changes. However, each investor should conduct their own research as every investment and trading move carries inherent risk.
Bitcoin (BTC) has reached new weekly highs following the opening of Sep. 28 on Wall Street, with investors looking towards the U.S Federal Reserve for new indications. BTC/USD 1-hour chart. Source: TradingView. Ahead of Powell's address, new volatility is brewing in the Bitcoin market, according to data from Cointelegraph Markets Pro and TradingView. Prior to this recovery, a fast-paced rise and fall cycle was seen in the Bitcoin price just 24 hours ago. This cycle saw prices peaking at $26,823 at Bitstamp as a result of a 2% daily increase, only for Bitcoin to later reverse its entire progress. A slow incline then started, with bullish investors looking forward to a $27,000 target.
Bitcoin seems to be responding positively to the latest U.S. macroeconomic data that showed a 1.7% year of year GDP growth for Q2, a figure slightly below the projected 2.0%. Meanwhile, the Personal Consumption Expenditures (PCE) index data for August matched projections. Keith Alan, co-founder of Material Indicators monitors, encouraged investors to embrace the volatility. The Binance BTC/USD order book data by Alan showed no considerable resistance for the spot price below the $27,000 mark.
These developments are setting the stage for the key event of the day, Jerome Powell's address. Powell is the Chair of the Federal Reserve and failed to produce significant fluctuations in crypto markets in his previous speeches. Powell's talk was scheduled for 4pm Eastern time at the Fed’s "Conversation with the Chair: A Teacher Town Hall Meeting" event in Washington, D.C.
Despite this rally, Daan Crypto Trades, a well-known trader, and analyst, showed optimism yet caution around Bitcoin's performance in comparison to Sep. 27. Daan commented on the similarity with yesterday's highs, but with significantly reduced Open Interest. He added that there seems to be longs chasing, and cautioned for a potential full retrace.
Meanwhile, fellow analyst Rekt Capital noted key resistance trendlines that Bitcoin needs to overcome for a substantial trend shift. Rekt Capital also opined that $29,000 could reappear as part of Bitcoin's larger decline.
Ultimately, this news doesn't represent investment advice or recommendations. It's still crucial for each reader to do their own research due to the inherent risk in any investment and trading deal.
Published At
9/28/2023 3:27:12 PM
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