#PowellWatch 🔶WHY POWELL'S SPEECH COULD DRIVE BITCOIN TO $126,600?
Is a new bullish cycle for Bitcoin on the horizon? BTC is moving in a turning point as markets digest Jerome Powell's latest speech at Jackson Hole. Is a new bullish cycle for Bitcoin coming?
Bitcoin is navigating in a trend change zone while markets digest Jerome Powell's latest speech at Jackson Hole. The Federal Reserve Chairman has pointed to increasing downside risks for employment, hinting at a possible rate cut in September. Historically, Powell's political signals have strongly influenced crypto markets, with accommodative tones fueling Bitcoin's momentum, while more restrictive stances have triggered sell-offs. With BTC's price now at a decisive level, traders are closely watching for signs of a move towards new all-time highs.
In fact, the Federal Reserve Chairman has acknowledged that the U.S. labor market is beginning to show signs of stress, raising the possibility of rate cuts sooner than expected.
At the same time, he has warned that inflation stemming from tariffs could complicate the outlook, forcing the Fed to balance risks between growth and price stability. Powell's comments have systematically acted as a catalyst for Bitcoin's price fluctuations, with accommodative signals fueling rallies and restrictive notes triggering sell-offs.
His latest speech suggests that the Fed is leaning towards an accommodative stance, which has historically bolstered Bitcoin as investors flock to risk assets. After a bounce from crucial support, BTC's price remains in an upward parallel channel, a bullish pattern. The possibility of a continued rise prevails, but technical indicators raise some concerns.
