Bitcoin (BTC) remained stuck in a tight range through May 20 as cryptocurrency markets shrugged off US macroeconomic triggers.
BTC/USD 1 hour candlestick chart on Bitstamp. Source: TradingView
Powell exits the market with ‘a lot of uncertainty’
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading just below $27,000.
The pair experienced brief volatility after Federal Reserve Chairman Jerome Powell made fresh comments on policy and inflation prospects.
Powell’s language, while leaving the door open for change if it were needed, failed to send clear signals for risk assets. In response, financial commentary source The Kobeissi Letter warned that “a lot of uncertainty” was ahead.
However, Bitcoin soon forgot about the event and returned to a range already familiar from the previous weekend.
Popular trader Skew assessed the climate on the stock exchanges, arguing that renewed volatility was only a matter of time.
“Growing variance between criminal and spot market; which I’ve already posted about,” he summarized some of the Twitter coverage of the day.
“Very narrow illiquid range here between Fed spokesmen after Friday. We expect the market to find an EQ early next week where both the spot and offender markets will be forced to establish a trend.”
Another contribution pointed out that there were first signs of a disruption in the status quo.
Crypto trader Tony Tony, meanwhile, predicted that the range would remain in place until the start of the new macro trading week.
A close above or below the levels marked on the accompanying 4-hour chart, he added, would prompt the market to reconsider.
Beware of “Big Selloff” in Bitcoin
Others were pessimistic about the immediate future when it comes to BTC price development.
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Popular analytics account IncomeSharks warned that a deeper correction is on the cards but may not materialize for another week.
“I expect another week of downside before the big sell-off,” read a Twitter comment the day before.
Trading resource Stockmoney Lizards agreed, predicting a collapse is imminent, citing the “head and shoulders pattern” that has been debated in trading circles for the past few weeks.
“Correction in the game,” it says summarizedwhich offers a landing zone around $24,500.
,BTC/USD annotated chart. Source: Stockmoney Lizards/Twitter
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This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.