© Reuters
Investing.com – Fed boss Jerome Powell’s intervention in Jackson Hole yesterday afternoon had a strong bearish impact on the , with the cryptocurrency falling to a low of $20,134 overnight Friday-Saturday, the lowest since mid-July, down almost 8% from the peak at $21,866 marked shortly before Powell spoke.
The Fed chief therefore maintained a hawkish stance, stating in particular that “the July figures on lower inflation are welcome, but they are not enough to give the Fed confidence in lower inflation. . »
Recall that the recent US inflation figures for the month of July turned out to be lower than expected, which prompted the market to consider that the Fed would slow the pace of rate hikes.
“We are taking vigorous and rapid action to moderate demand so that it better aligns with supply, and to keep inflation expectations anchored,” he added, specifying: “We will continue our efforts until we are satisfied that the job is done. »
The Fed boss also warned that “restoring price stability will take some time and will require using central bank tools ‘forcefully'”.
Faced with these remarks, the Dollar jumped, and risk appetite drastically declined, a largely bearish cocktail for Bitcoin and cryptocurrencies in general.
It should also be noted that the suffered a much worse sanction than that of Bitcoin in the face of Powell’s speech. The second largest cryptocurrency in the market indeed marked a low last night at $1485, down 12.8% from the peak at $1703 marked Friday afternoon shortly before Powell’s speech.
Important thresholds to monitor on Bitcoin and Ethereum
From a chart perspective, Bitcoin’s lows yesterday at $20,134 and the major psychological threshold of $20,000 form key support very close to current price action. A break below this zone would constitute an important bearish signal, which would put our sights on the next support zone at $18,650/$19,000. Then this year’s low at $17,600 will come into play.
On the upside, the first spottable resistance zone on the BTC/USD short-term charts is $20,800/$21,000, then $21,850/$22,000. However, taking a step back on the daily chart makes it possible to estimate that the underlying negative bias will only be called into question from a return above $25,000.
As for Ethereum, the cryptocurrency is currently trying to reclaim the $1500 threshold, which coupled with last night’s lows at $1485 form an immediate support zone. Further down, the $1400 threshold and the July 27 low towards $1360 will be the next supports.
On the upside, the $1600 and $1700 areas are the next potential resistances to consider if Ethereum starts to rebound.