What Will Happen If Bitcoin Price Rises to $70,000 This Weekend?
Bitcoin (BTC) price reinvigorated the uptrend during the American trading session on Friday after the Federal Reserve’s Chair, Jerome Powell’s speech at the Jackson Hole meeting. Despite the dovish outlook, global markets, including stocks and crypto, responded positively as investors looked forward to liquidity inflow toward the end of the year.
Bitcoin Price Market Movers: Powell’s Jackson Hole’s Speech
Bitcoin price increased 4.6% on the day in addition to a 6.6% increase in seven days to $63,323. The anticipated Fed Chair Powell’s speech at the Jackson Hole Symposium in Wyoming took center stage on Friday, with markets rallying, indicating a short squeeze. Here are the main highlights:
- Jerome Powell takes a dovish outlook, saying, “The cooling in labor market condition is unmistakable.” This follows July’s nonfarm payroll report, signaling a possible US recession.
- The Fed believes the labor market is “unlikely to be the source of elevated inflationary pressures anytime soon.” Meanwhile, the nonfarm payroll revision marked the largest downward revision since 2009. The actual nonfarm payroll growth from April 2023 to March 2024 was revised downward by 818,000, or nearly 30%, from the initially reported 2.9 million.
- The Fed does not anticipate any further cooling in the labor market. In other words, Powell does not expect a recession. He was compelled to say that it was time for a policy change. “The direction of travel is clear, and the timing and pace of the rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” Powell added.
- The Fed argued that it intends to do everything to ensure a strong labor market and price stability. All eyes are now on the economic data in September, including August’s CPI and nonfarm payroll, which may help determine the magnitude of the rate cuts.
BTC Price Analysis: BTC Targets $70,000
Bitcoin price bullish outlook ahead of the weekend is attributed to Powell’s speech and a triangle breakout in the four-hour range. If sustained, a 13% move will close in on the $70,000 mark and possibly ignite FOMO and an extended rally to ATH.
Traders will increase exposure to BTC price bolstered by an upcoming crossover of the 20-day and the 50-day Exponential Moving Averages (EMAs). Key targets before $70,000 include the congestion at $64,000 and $66,000. Taking these hurdles down will reinforce the bullish grip and increase the chances of Bitcoin price pushing past $70,000.
Based on this Bitcoin price prediction, traders must be cautiously bullish for potential delays at $64,000 or even $66,000. Until the Fed confirms the first rate cut, liquidity challenges could still plague global markets, including crypto. Nonetheless, dips will prove to be profitable as we advance.
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