Bitcoin (BTC) maintained its hold above $28,500 following the Wall Street opening on October 19, as traders eagerly awaited a key speech on United States economic policy. The price action of BTC showed signs of strength ahead of the speech by Jerome Powell, the chair of the Federal Reserve.
Scheduled to speak at the Economic Club of New York at 12 pm Eastern Time on Thursday, Powell faced a challenging macroeconomic scenario, with 10-year United States bond yields at their highest level since 2007. Market participants were particularly interested in whether Powell’s language would be dovish or hawkish in light of the lingering memory of the 2008 Global Financial Crisis.
Lawrence “Larry” Lepard, an asset management expert, predicted that Powell was on the verge of making a very dovish statement or taking dovish action that would trigger a significant rally in the US Bond market. This prediction came as various data prints indicated inflation persisting beyond expectations, causing concerns that the Fed might implement prolonged high-interest rates.
Despite these concerns, market odds from CME Group’s FedWatch Tool still suggested an 88% chance that rates would remain unchanged at the next Federal Open Market Committee (FOMC) meeting on November 1. In contrast, there was only an 11% chance of a further rate hike.
Economist Mohamed El-Erian, speaking on CNBC’s Squawk Box segment, also believed that rates should not rise again. He suggested that the Fed should convey the message that they are done raising rates. El-Erian’s views favored risk assets, including cryptocurrencies.
As BTC price movements remained relatively stable, volatility decreased, and liquidity walls formed on the Binance futures platform. Open interest was steadily rising, while funding rates trended down. Traders closely monitored these liquidity walls, hoping for a breakthrough after the New York opening.
Data from on-chain monitoring resource Material Indicators confirmed that there had been no significant changes in the Binance order book. Support and resistance levels remained intact despite the volatility experienced earlier in the week.
Traders paid attention to key levels apart from the spot price as potential indicators for future BTC price movements. Crypto Tony identified $28,000 and $29,000 as critical levels, suggesting that a flip to support at $29,000 would be an opportunity to go long, while a drop below the lows at $28,000 would be an opportunity to short.
Overall, the outlook for Bitcoin remained bullish, supported by key trendlines that indicated buyer support. However, it is essential to note that this article does not contain investment advice or recommendations. Investors and traders should conduct their own research before making any decisions.
In conclusion, Bitcoin held steady above $28,500 on October 19, as market participants awaited Jerome Powell’s speech. The speech’s dovish or hawkish tone would have significant implications for the US Bond market and risk assets such as cryptocurrencies. BTC price movements remained stable, and traders monitored liquidity walls for potential breakthroughs. Key levels outside the spot price were also closely watched for trading opportunities. The overall bullish outlook for Bitcoin was supported by key trendlines. Investors and traders should exercise caution and conduct their own research before making any investment decisions.