Bitcoin (BTC) Update: Bitcoin Remains Vulnerable ahead of Jackson Hole
Bitcoin (BTC/USD) Price Update:
- Bitcoin (BTC) reclaims $48,000 ahead of Jackson Hole Symposium and other major risk events
- Speculation remains the primary catalyst for short-term price action with markets now waiting for the Fed to provide I clearer time-frame for tapering
- US Dollar (USD) weakness may support demand for major cryptocurrency and potential amendments in infrastructure bill
Bitcoin (BTC) prices have regained confidence above $48,000 after a minor setback from the key psychological level of $50,000, which continues to hold as resistance for the imminent move.
With the US Jackson Hole Symposium on the horizon, the virtual summit is expected to kick off tomorrow and will end on Friday. With inflationary pressures on the rise, the Federal Reserve’s temporary hawkish tone from last week’s FOMC meeting minutes has once again turned dovish as the number of Covid-19 cases continues to rise from the spread of the Delta variant.
This series of events and the wait-and-see rhetoric, has provided Bitcoin (BTC), Ethereum (ETH) and more recently Cardano (ADA) with the platform to once again aim for new highs as speculation continues to drive sentiment.
Bitcoin (BTC/USD) Price Analysis:
After falling to $28,000 at the end of July, Bitcoin prices made a stupendous recovery this month, climbing back above $50,000, a level last seen in May.
Unable to break through this critical resistance level, BTC/USD fell back below $48,000 temporarily and have since stabilized above the new level of support. As prices continue to track the 8-period Exponential Moving Average (EMA), the Commodity Channel Index (CCI) currently remains at the upper bound of the range, suggesting that the uptrend may continue to hold, at least for now.
Chart prepared by Tammy Da Costa using TradingView
With the Jackson Hole Symposium now at the forefront of this week’s major event risk, major cryptocurrencies may continue to experience heightened volatility as investors wait for further clarification from the Federal Reserve over the next two days.
Bitcoin (BTC/USD) Key Levels
For now, a break below $47,000 could see Bitcoin prices testing the next level of support at $42,293, the 38.2% Fibonacci retracement level of the April – June 2021 move.
In contrast, as long as price action remains above $48,000, a retest of $50,000 and a potential test higher is still probable depending on the outcome of the major risk event at play.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.