With a bearish wedge on the Bitcoin chart and Jerome Powell's speech just around the corner, are we facing a 46% drop and is the entire crypto market going to plummet? 🤔
What's up, my people! 🚀 Get ready because the world of cryptocurrencies is on edge and the future of Bitcoin feels more unstable than a hundred-dollar bill at a party. It turns out that analysts are seeing a super bearish pattern on the price chart, something they call an 'ascending wedge.' And what does that mean? That recent rises have been weak, and the price is compressing to a critical point.
This 'wedge' is the main alarm signal. The price is rising, yes, but the peaks are becoming less pronounced and the momentum is running out. To top it off, the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) are showing what experts call a 'bearish divergence,' which is like the price engine running out of gas. All these technical indicators are pointing to one thing: a hard drop is coming.
But the real earthquake, the one that could trigger this bomb, is not a chart, but a person: Jerome Powell, the head of the Federal Reserve. At the famous Jackson Hole Symposium, his speech is the main event. Everyone is glued to the screen to see if he utters the magic words: 'rate cut.' If Powell says they are going to lower interest rates, investors will breathe a sigh of relief and the price of Bitcoin could soar like a rocket. Why? Because when money is 'cheaper' (low rates), people invest in risk assets like Bitcoin.
But... if Powell says there will be no cuts and they will keep rates high, hold on tight! 📉 That signal would be the push the market needs to crash. It's like a bucket of cold water for everyone who was expecting a rally. And with that drop, analysts project that the price of BTC could fall by up to 46%, hitting $60,370.
So, the outlook is as follows: the technicals say Bitcoin is weak, and the macroeconomic context with Powell's speech could be the trigger. It's the perfect storm. If the drop happens, it will be felt throughout the crypto ecosystem and, therefore, in the pockets of many investors.
Will the bearish wedge be confirmed or will Powell surprise us with good news? Stay tuned, because what happens in Wyoming could change the game for all of us who have invested in Bitcoin.
