Crypto Industry News:
Bitcoin's price has fallen by about 5% after Friday's speech by US Federal Reserve Chairman Jerome Powell in Jackson Hole, Wyoming. He said the central bank would "definitely use its instruments" and it would take some time to fight inflation.
Powell discussed the importance of price stability during the meeting. He stated that this is the "backbone of the economy" and that without it, the economy would not benefit anyone. He stressed that price stability must be restored and maintained, but until the economy reaches this point, "it will be harder for households and businesses.
Powell said: "These are undesirable costs of controlling inflation. However, not restoring price stability would have had a much worse effect."
This year, the price of Bitcoin has been shaken by massive liquidation of the market. The asset is -70% below its all-time high of $69,045 of last November.
Technical Market Outlook:
The BTC/USD pair has fallen out from the ascending channel around the level of $21,000 and after the Powell statements, the bears had pushed the prices below the level of $20,000. The next target for bears is seen at the level of $18,940 (technical support from July 13th) and $18,640 (technical support from July 1st). The momentum remains weak and negative, however, there is a bullish divergence seen on the H4 time frame chart between the price action (last low) and momentum. The larger time frame trend (daily and weekly) remains down until further notice.
Weekly Pivot Points:
WR3 - $20,566
WR2 - $20,144
WR1 - $19,963
Weekly Pivot - $19,722
WS1 - $19,540
WS2 - $19,300
WS3 - $18,878
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.