Bitcoin Investors Prepare for a New Week After a 10% Drop - COINTURK NEWS
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Bitcoin Investors Prepare for a New Week After a 10% Drop

6:15 pm (35 days ago)
August 21, 2023

What Do the Data Say?

Bitcoin investors are starting a new week after recovering from a sudden 10% drop. While the $26,000 level has been the focus of the markets so far, theories are being generated about where Bitcoin could go next. Multiple factors are coming together to potentially have some impact: as macro data pressures in the United States reignite, the Federal Reserve will make significant comments on the economy at the annual Jackson Hole Economic Symposium.

According to TradingView data, many expected the start of volatility at the weekly close on August 20th, but Bitcoin drew the line of its upward movement at $26,300. The subsequent drop brought the market back to the level of $26,302 at the time of writing.

Bitcoin Should Break Resistance Level

A calm weekend made some investors think. According to them, Bitcoin may now enter a new range trading phase. Popular investor CrypNuevo told his subscribers that the most likely outcome for the coming week is to continue trading in the range.

“On Monday, I want to see a false move towards $25,700-$25,800 downwards and then a comforting bounce to the middle of $27,000 for the rest of the week.”

Volatility is Back

While last week was calm in terms of US macroeconomic data releases, the next five days promise a change of pace. US jobless claims will be announced on August 24th, and before that, housing sales and other data will come. The Kobeissi Letter, a financial commentary source, summarized it as “Volatility is officially back,” for its subscribers.

However, investors and analysts are focused on Federal Reserve Chairman Jerome Powell, who will take the stage at the annual Jackson Hole Economic Symposium on August 25th. Jackson Hole is a classic place for market fluctuations, and given the current climate, this year’s event will be no exception.

Speakers like European Central Bank President Christine Lagarde will also join Powell. With both Nasdaq and S&P 500 joining the cryptocurrency in a week full of losses, historical patterns could still be reversed as Jackson Hole traditionally reduces risks.

Popular investor and analyst Miles Johal was also optimistic and noted that unlike stocks and Bitcoin, the US dollar is facing an uphill battle in terms of strength.

Investors are More Fearful Than Ever

Could Bitcoin actually be not as weak as the market claims? According to the Crypto Fear & Greed Index, the average crypto investor is more afraid than ever since the Silicon Valley Bank (SVB) crash in March.

With a “fear” index of only 38/100, fear is clearly dominant as the new week begins, and Fear & Greed has dropped by 16 points in the past seven days.

Meanwhile, the Stockmoney Lizards trading team is among those calling for a more balanced approach to the status quo. They interpreted the price performance of BTC in the current halving cycle by comparing it to the previous one.

“Bitcoin is historically full of such sales, and the market will recover as it has in the past.”

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