Bitcoin Price Outlook: Mixed Signals After Fed Address
Before U.S. Federal Reserve Chairman Jerome Powell delivers his much-awaited speech at Jackson Hole on Friday, Bitcoin traders kept a tight eye on two price levels. The data indicated a defensive stance, but there is still a chance for another rally in the second half of this year. The options market is currently generating conflicting signals.
An indication of a bullish bias is a negative 25 Delta Skew, which indicates that traders are paying more for call options. It’s important to note, though, that the skew had somewhat decreased over the last day, suggesting that traders may be less inclined to pay to hold onto their positions before Friday’s event.
Market Volatility Ahead: Powell’s Remarks Push Bitcoin Higher
According to CoinMarketCap, Bitcoin has dropped by almost 5% in the last week and traded close to a two-week low of $113,000. But after Powell’s comments, the situation abruptly shifted, and it started trading at $116,496, up 3.01% over the previous day. The cautious move is consistent with the market’s correction last week, when expectations of a rate decrease fell due to rising core inflation and weaker-than-expected producer data.
The event risk is high ahead of Fed Chair Powell’s remarks at Jackson Hole. Volatility positioning is likely to remain defensive through the speech, followed by either renewed direction or status quo afterwards,
Browse PostsJames Toledano, Chief Operating Officer at Unity Wallet
Bitcoin Price Forecast: Dovish Fed Could Spark Massive Rally
Given that market sentiment is still being influenced by central bank direction and macroeconomic indicators, analysts stress that the upcoming weeks will be crucial in deciding Bitcoin’s overall trajectory. Bitcoin may continue to rise beyond $120,000 if Powell affirms a more dovish outlook in September, drawing in both institutional and retail investors. Traders should prepare for significant price swings in either direction, though, as persistent inflationary pressures and geopolitical uncertainty may keep volatility high.
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