BTC price climbs above $28.6K as Bitcoin awaits ‘very dovish’ Fed Powell speech
Bitcoin ( BTC ) kept pressure on $28,500 after the Oct. 19 Wall Street open ahead of a key speech on United States economic policy.
BTC/USD 1-hour chart. Source: TradingViewLepard: Powell may flip “very dovish”
Data from Cointelegraph Markets Pro and TradingView showed BTC price action gaining strength ahead of commentary by Jerome Powell, chair of the Federal Reserve.
Due to speak at the Economic Club of New York at 12 pm Eastern Time on Thursday, Powell faces a complex macroeconomic scenario with 10-year United States bond yields at their highest since 2007.
With the ghost of the 2008 Global Finance Crisis on market participants’ radar, the extent to which Powell’s language would be dovish or hawkish was the key talking point.
“They can’t let the bond rout continue,” asset management guru Lawrence “Larry” Lepard told X subscribers on the day.
“Prediction: Powell is on the verge of saying or doing something which is very dovish which will cause a massive rally in the US Bond market.”
In the wake of various data prints showing inflation persisting beyond expectations, the Fed was previously thought to be planning an extended period of high interest rates.
Per the latest data from CME Group’s FedWatch Tool , market odds of rates remaining at current levels at the next meeting of the Federal Open Market Committee (FOMC) on Nov. 1 were nonetheless at 88% — versus a mere 11% chance of a further hike.
Fed target rate probabilities chart. Source: CME GroupSpeaking on CNBC’s Squawk Box segment, economist Mohamed El-Erian suggested that rates should not rise again — a more advantageous outcome for risk assets, including crypto.
“The message to give right now is the Fed is done; we are done,” he said about the content of Powell’s speech.
“That’s what the message should be. Whether he gives it or not, I don’t know.”
Bitcoin traders monitor liquidity walls
BTC price movements themselves, meanwhile, stayed locked in place between clouds of liquidity, with volatility reduced as a result.
Related: Hodling hard: Bitcoin’s long-term investors own over 76% of all BTC for the first time
#Bitcoin Currently being held in between two big walls on Binance futures.
— Daan Crypto Trades (@DaanCrypto) October 19, 2023
Open Interest rising steadily as funding rates trend down.
Let's see what we'll get after the NY open today! pic.twitter.com/nyLMQ07XFo
Data from on-chain monitoring resource Material Indicators confirmed that the picture remained the same on the Binance order book, with significant support and resistance levels unchanged in the wake of the volatility that started the week.
BTC/USD order book data for Binance. Source: Material Indicators/XTraders thus kept an eye open for crossings of more significant lines in the sand further from spot price. Among them was Crypto Tony, who highlighted $28,000 and $29,000 targets, respectively.
$BTC / $USD - Update
— Crypto Tony (@CryptoTony__) October 19, 2023
These are the key levels for you to keep an eye on legends. So $29,000 flip into support to long, or short if we lose the lows at $28,000 pic.twitter.com/P5i3aA8FvE
As Cointelegraph reported, key trendlines now lend weight to a bullish prognosis for Bitcoin going forward, with buyer support enduring.
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