FED’s press conference about the next stimulus package can leave Bitcoin price more bullish in the short-term
Bitcoin price was not very stable during the week. A high selling pressure around the said level ensued an overnight bearish correction. As a result, the pair fell to as low as $ 10,750 at one point in time. Meanwhile, the meeting of the Federal Open Market Committee on policy decisions is the most important catalyst behind the conflicting market trend of cryptocurrencies.
Bitcoin bulls should brace for the cryptocurrency to hit the $ 9,800 valuation
BT/USD failed to maintain support above $ 11,200 as high selling pressure around the aforementioned levels resulted in an overnight bearish correction. As a result, Bitcoin fell to as low as $ 10,750, as AZCoin News reported.
“SuperTrend is now flipping bearish and looks to be ready to correct as predicted.”
The statement comes amid Bitcoin having excessive consolidation moves inside the $ 10,800 – $ 11,200 region. Any attempt to prolong the rally above $ 11,200 has been rejected. At the same time, the level of $ 10,800 kept BTC / USD down from its downtrend.
The analyst did not give the immediate reason behind his bearish prediction but it looks like he is ready to turn to the bulls if Bitcoin breaks past $ 11,250.
$BTC – Still looking like my prediction should play out. Either we drop now (next few days), or we pump to diagonal resistance/supertrend resistance, then go down. The only way I would change to a more bullish bias is if we closed bullish above $11,250. pic.twitter.com/f60wfZCj4D
— IncomeSharks (@IncomeSharks) September 18, 2020
Furthermore, traders are also waiting for Federal Reserve Chairman Jerome Powell and US Treasury Secretary Steven Mnuchin to appear before the Senate Banking Committee later this week. The two sides may shed more light on the next stimulus package that the US Congress is stuck in the size of the aid.
Bitcoin price and geopolitical market correlations
Before the Federal Reserve Chairman Jerome Powell’s press conference, Bitcoin surged about 7.5% to $ 11,099, and this momentum came from a belief that the Fed chair offers a dovish outlook in the long term. And there is a high possibility that the central bank of the United States will keep interest rates lower until 2023 while targeting inflation above 2%.
Bitcoin traders have been looking forward to a fruitful weekly session as markets await congressional testimony from Powell and US Treasury Secretary Steven Mnuchin.
The two will discuss the long-awaited COVID grant before the Senate Banking Committee on Thursday. More likely, Mnuchin talked about the US government’s plans to launch a second economic stimulus package. Central bank officials may shed more light on how his office will achieve higher inflation in the coming years in his independent speech on Wednesday before the House Selection Committee. That could increase investors’ appetite for more risky assets.
Bitcoin price has risen 0.64% to close to $ 10,990, again raising expectations for a retest of $ 11,000. Part of Bitcoin’s bullish outlook comes from expectations for a weaker US dollar.
The USD price traded lower on Monday, showing investors’ resilience to replenish their cash stocks. Meanwhile, the dollar may also pull back on the release of US aggregate PMI data in September.
Dimitri Zabelin, the Currency Analyst at DailyFX.com, said:
“Analysts are expecting prints above the 50.00 mark which draws the line between contraction (below 50) and expansion (above 50). While the data is expected to be weaker than the prior prints – falling in line with the notion of slowing economic acceleration – the risk-on tilt that may ensue may punish USD.”
BTC/USD closes above $ 11,000, with technical targets indicating a slight rally towards $ 11,500. Of course, that could happen if Mnuchin pledged a stimulus deal. Last week, the Finance Minister said that the government should not worry about deficits or shrinking balance sheets.
- The Cryptocurrency Market Cap Has Lost $8 Billion Meanwhile, Bitcoin Price Remains Relatively Calm And Is Just Beneath $ 11.000
- Bitcoin Price Has A Crucial Level At $ 11.000 To Move Above To Confirm That A Full-Blown Bullish Reversal Is In The Works