In a week marked by economic expectations and turmoil, the crypto market experienced a rollercoaster ride as Bitcoin price rose and fell sharply in response to Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole Economic Symposium.
Bitcoin price rises due to Powell’s dovish tone
Powell’s Remarks struck a dovish tone, indicating that the central bank is open to further rate cuts in the coming months to counteract a possible slowdown in the labor market. This stance was positive for Risky assets like Bitcoin because it signals a looser monetary policy from the Fed.
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In fact, Bitcoin price quickly broke through the $62,000 mark, a level it hadn’t reached in over a week, as investors reacted positively to Powell’s comments. However, the rally was short-lived as the price subsequently retreated to around $60,800. After According to crypto analyst Inspo Crypto, Bitcoin is now at a critical point:
We will have to wait and see if Bitcoin consolidates again below $61,000 or moves towards the bottom of the up-channel, which is right at $60,000. If this breaks, we still have a safety net at $59,500. However, if BTC stays above $61,000 and the selling pressure subsides, it could be an interesting and, above all, bullish weekend.
Important indicators are developing positively
Another analyst, Rekt Capital, noted that the Bitcoin price still has a close daily above $62,000, which would be needed to confirm a continuation of the recent price recovery.
Rekt Capital recommended that Bitcoin could form a bullish flag pattern similar to the one seen in early March 2024, which could allow a move toward $65,000 or more over time.
Market expert Ali Martinez highlighted a positive development, although it should be noted that Bitcoin’s bull/bear market indicator has switched back to bullish after fluctuating between bearish and bullish territory since the beginning of August.
This, says Martinez, could strengthen the arguments for continuing the Price recovery This has been observed over the past two weeks after Bitcoin briefly fell to a 6-month low of $49,000 earlier this month.
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Looking to the future, Martinez identified Two key resistance levels to watch for Bitcoin: $64,045 and $66,250. According to Martinez, if the cryptocurrency can hold the support at $60,365, a move toward these higher price points could be possible.
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For now, Bitcoin price appears to have stabilized at around $61,600 after volatility spiked significantly just minutes after Powell’s speech. CoinGecko Data shows that the largest cryptocurrency on the market is still up 2% in the 24-hour period.
It will be important to monitor BTC’s closing price on the day as the next week’s price movement needs to be estimated before the expected monthly closing price.
