Key facts:
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Powell said it “will take time” to resolve inflation, which fueled markets’ decline.
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Some estimate that BTC would test a floor at USD 19,000-20,000, others that it will continue to fall.
The price of bitcoin (BTC) stepped on both days of the weekend the level of USD 19,000, its minimum in 2 months. Its fall began after the comments of Jerome Powell, the president of the Federal Reserve of the United States (Fed), in Jackson Hole.
“While higher interest rates, slower growth and softer labor market conditions will reduce inflation, they will also bring some pain to households and businesses,” Powell said. In this way, he pointed out that restore price stability [que está cerca de su máximo en 40 años] it will take some time«.
Such statement, made last Friday, discouraged the demand for risk assets in general. The shares closed the stock market lower and bitcoin has depreciated in the following days. As CriptoNoticias reported, his message was expected create turbulence in the markets.
To this, it is added that the cryptocurrency it was already coming off a drop from its 3-month high of $25,000 to the $21,000 level. This price traded for a week just prior to Powell’s comments, showing that there was no strength in demand.
Where will the price of bitcoin go now? Will it go up or down more?
Cryptocurrency analyst Raucrypto Indian that the cryptocurrency “looks for the liquidity zone after losing the lower line of the ascending channel”. According to his projection, bitcoin would find support between USD 20,500 and USD 19,200.
For the GrandMage trader, bitcoin could reach USD 18,000 in this fall, which he considers “a new opportunity to make money offered by the market.” From a positive perspective, the investor Healthy Pockets also believes that the current low is just a bump to take advantage of later.
On the other hand, the CryptoLinea group of traders mentioned who expect lower ranges for the cryptocurrency in the future. This because of we are close to starting September, a month that is considered bearish in the history of bitcoin.
From the eyes of analyst financial and markets Alberto Cárdenas, “Jackson Hole confirms that we are in a historical period of wealth confiscation”. That way, Powell’s contribution from the Fed there reinforces his conviction reported in CriptoNoticias that bitcoin will drop to $10,000.
“I have in mind to buy bitcoin for less than $10,000 and Ethereum for less than $700,” commented warning that he waits “sitting” for that fall. From his long-term bullish perspective, he believes that BTC y ETH they will rise over time after hitting their low this season between the end of 2022 and the beginning of 2023.
This projection comes as other members of the ecosystem like Changpeng Zhao, the CEO of Binance, think that BTC will not return to the yearly low of just below $18,000 that it hit in June. In this sense, these days we will see bitcoin test support at the level of USD 19,000 and a rebound later. But if it fails, its price will continue to decline.