Bitcoin bears have made their impact more felt in the past few hours, pushing BTC below the $ 11,500 level. This level is very important to traders and has been one of the most watched levels in recent days. If the drop is not reversed in the short term, it has the potential to trigger a panic sell that ultimately leads to lows of $ 10,000.
Investors are watching the market closely as they try to confirm this as a bear-luck or the beginning of a downtrend. If there is a rapid bounce, it will lead to a retest of highs of $ 12,000. However, if the 11,000 or 10,500 levels are tested then we can speak of a long-term bear market start.
FED Chairman’s Speech May Ignite Bitcoin (BTC) Wick
On Thursday, FED Chairman Jerome Powell is expected to deliver a speech at the Jackson Hole Economic Policy Symposium. The Fed is expected to outline new measures it plans to take to save the economy before reaching its 2% inflation target.
The predictions in the crypto community are that the measures that emerge are the same as those currently being implemented and will ultimately lead to inflation.
Therefore, these measures could very well revitalize the market over the weekend. For this single reason, some investors are taking advantage of the “discount” purchase in anticipation of a jump. With the continued devaluation of the dollar with the measures of the Fed, it is expected that Bitcoin will continue to benefit to some extent in both the short and long term.
In the reflex movement, the rest of the market has set a downtrend since Tuesday. Most altcoins are in red and some violate key supports like Ethereum. Although starting the week at over $ 400, the largest altcoin is currently under $ 390. Most altcoins may encounter lower supports, as long as the rest of the market fails to recover.