Bitcoin bears have got a better grip of the asset in the last few hours, successfully leading it under $11.5K. This level is crucial to investors and has been one of the most-watched levels in recent days. A dip has the potential to trigger a panic sell that ultimately leads to the $10K lows if not reversed in the short term.
Investors are closely following the market as they look to confirm this as a bear-fluke or a start of a downtrend. If there is a quick bounce, this will ultimately lead to a retest of $12K highs as most investors are already accumulating. If a start to a downtrend, a dip under $11K is likely with the real test setting at $10.5K to confirm a long term bear phase.
FED Chair’s Speech Key For Set-up
On Thursday, FED Chairman Jerome Powell is expected to give a speech at the Jackson Hole Economic Policy Symposium. It is expected that he will outline the new measures the FED plans to undertake to keep the economy going, having missed the 2% inflation target.
In the crypto community, predictions are that the measures revealed are alike to those already being implemented and that ultimately leads to inflation.
As such, these measures could very well reignite the market at the end of the week. For this sole reason, some investors are taking advantage of a ‘discount’ buy in anticipation of a jump. With a continued devaluation of the dollar through the measures taken by the FED, Bitcoin is to some extent expected to continue gaining off this both in the short term and long term.
In a reflex move, the rest of the market set a downward trend starting on Tuesday. Most altcoins are in the red with some like Ethereum breaching key supports. Despite starting the week above $400, the largest altcoin is now under $390.
Most holders are under pressure to capitulate with lower supports unlikely to hold unless the rest of the market can stage a rebound.
