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BTCUSD Under Pressure after Jerome Powell's Speech

8/29/2022 3:15 PM

Last week, the BTC/USD pair tried to regain lost positions, but from 21875.00 (Murrey [4/8]), the decline resumed, and now the price is around ​​19500.00 (Murrey [1/8]).

The reason for the weakening of "digital gold" and, with it, the majority of alternative digital assets was the Friday comments of the head of the US Federal Reserve, Jerome Powell. At the Jackson Hole symposium, the official said the regulator would continue to adjust interest rates even as they put pressure on economic growth. At the same time, he noted that the increase cycle could not be stopped or slowed down, although inflation could already have reached its peak. After the indicator approaches the level necessary for a sustained downward movement in consumer prices, it will linger in this area for a while and not go down. Powell's position did not live up to the expectations of investors who were counting on the possibility of a slowdown in the pace of monetary tightening in the US after the July rollback of inflation from 9.1% to 8.5%. The US Federal Reserve will continue raising rates, and the US currency will continue to receive serious support, strengthening against its main competitors.

In general, the forecast of Galaxy Digital founder Mike Novogratz, who previously noted that the cryptocurrency market would remain under pressure for the entire period of tightening monetary policy in the United States, is justified.

Currently, the trading instrument is close to 19531.25 (Murrey [1/8]), a downward breakdown of which will give the prospect of further decline to 18750.00 (Murrey [0/8]) and 17800.00 (the area of ​​June lows). Bollinger bands downward reversal and MACD histogram increase in the negative zone indicate the continuation of the short-term downward trend, while Stochastic reversal in the oversold zone does not rule out corrective growth to ​​21093.75 (Murrey [3/8]), although its potential is seen as limited.

Resistance levels: 20312.50, 21093.75, 21875.00. | Support levels: 19531.25, 18750.00, 17800.00.

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