Bitcoin (BTC) experienced a surge in price after the Wall Street open on September 28, as investors eagerly awaited insights from the United States Federal Reserve. This bullish momentum came after what some referred to as a “pump and dump” movement within the previous 24 hours.
On Bitstamp, BTC reached highs of $26,823 due to a 2% daily gain. However, the cryptocurrency quickly retraced all its progress and began a slower ascent towards $27,000. The latest macroeconomic data from the United States seemed to have a positive impact on Bitcoin’s performance.
Despite second-quarter gross domestic product (GDP) growth coming in slightly below projected rates at 1.7% year-on-year, the Personal Consumption Expenditures (PCE) index data for August met expectations. Keith Alan, co-founder of monitoring resource Material Indicators, expressed his anticipation for increased volatility in the market as a response to this data.
Analyzing the BTC/USD order book on Binance, Alan noted that there was little resistance standing in the way of Bitcoin breaking the $27,000 mark. This suggested that the cryptocurrency had the potential to continue its upward trajectory.
While the macro data set the stage for the day’s events, the main highlight was Federal Reserve Chair Jerome Powell’s upcoming speech. Powell had previously failed to deliver noticeable volatility to crypto markets with his remarks. However, he was scheduled to speak at the Fed’s “Conversation with the Chair: A Teacher Town Hall Meeting” in Washington, D.C., later that day.
Notably, popular trader and analyst Daan Crypto Trades expressed optimism about the day’s movement compared to the previous day. He observed that the current move had less open interest, indicating reduced speculation. Nevertheless, he cautioned that a significant retracement could still occur if long positions did not calm down.
Rekt Capital, another trader and analyst, highlighted key resistance trend lines that Bitcoin needed to overcome to effect a more substantial trend change. He pointed out that BTC was challenging the Bull Market Support Band cluster of moving averages, and a breakout beyond them would signal a positive shift in the market.
Furthermore, Rekt Capital acknowledged that Bitcoin could potentially rally to around $29,000 to establish a new Lower High, thus forming a part of a broader comedown for the cryptocurrency.
It is important to note that this article does not offer investment advice or recommendations, as all investments and trading decisions involve risks. Readers are advised to conduct their own research before making any financial decisions.