The FOMC minutes and recent comments from a member of the FOMC board are the catalyst for the recent decline in the BTC/USD pair, triggering pessimistic Bitcoin price predictions. Bitcoin prices look set to stage the 6th day of decline, following a rejection from the 25,000 psychological barrier as the latest Fedspeak ramps up the potential for a new round of additional rate hikes despite cooling inflation.
On Friday, the US Dollar hit a fresh 1-month high against its peers, as noted hawk and St.Louis Fed President James Bullard hinted that he was leaning towards another 75 bps rate hike in the September meeting.
This view was also echoed by Kansas City Fed President Esther George, who backs further tightening until there is convincing evidence that inflation has cooled, and San Francisco Fed President Mary Daly, who indicated that a 50 bps or 75 bps rate hike looked “reasonable.” These comments are coming ahead of the key Fed event, the Jackson Hole Symposium, on 25-26 August. Pessimistic Bitcoin price predictions are now leading the selloff on the BTC/USD, which is down 5.58% as of writing.
The active daily candle has violated the lower border of the evolving wedge pattern. The breakdown of this pattern must also overcome the 21785 support (21 June and 17 July highs) to set off a measured move that is expected to find completion at 17652 (18 June low).
This breakdown move must also take out the support pivot at 20048 to complete the move. A further extension to the south targets the 16068 support, where the 6 November 2020 high and 6 November 2020 low are located. 12424 and 10329 are additional downside targets that are currently not viable.
On the flip side, the bulls need to reject the ongoing violation of the wedge’s lower border to force a break of the 24055 resistance. This break must be accompanied by a clearance of the recent high at the 25000 psychological price mark, targeting 27658 (4 January 2021 low) and the 21 July 2021 low at 29856.
This post was last modified on Aug 19, 2022, 10:43 BST 10:43