Bitcoin (BTC) continued to exert pressure at $28,500 following the opening of the Wall Street market on October 19. Traders were awaiting a key speech on United States economic policy by Jerome Powell, the chair of the Federal Reserve.
Data from Cointelegraph Markets Pro and TradingView showed that the price of BTC was gaining strength ahead of Powell’s speech. Powell faced a complex macroeconomic scenario with 10-year U.S. bond yields reaching their highest level since 2007. Market participants were interested in whether Powell’s language would be dovish or hawkish.
Lawrence “Larry” Lepard, an asset management guru, predicted that Powell would take a dovish stance, causing a massive rally in the U.S. bond market. Inflation data had previously suggested that the Fed might maintain high interest rates for an extended period.
Market odds from CME Group’s FedWatch Tool indicated that there was an 88% chance that rates would remain at their current levels at the next meeting of the Federal Open Market Committee, and only an 11% chance of a further rate hike.
Economist Mohamed El-Erian suggested that rates should not increase again, which would be more favorable for risk assets, including cryptocurrencies.
The price of BTC remained stagnant, with reduced volatility and liquidity surrounding it. Traders closely monitored support and resistance levels, such as $28,000 and $29,000, to make trading decisions.
Recent trends have indicated that Bitcoin could continue to rise, with key trendlines showing buyer support and a bullish outlook.
Disclaimer: This article is not offering investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making a decision.