Fed, futures and fundamentals: 5 things to watch in Bitcoin this week

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An important Fed policy meeting forms the centerpiece for a new week’s trading, which could see macro hit Bitcoin price action once more.


Bitcoin (BTC) starts another week in a bullish mood as hurdles line up to shape price trajectory.

Cointelegraph presents five factors determining where BTC/USD may go in the coming days, and what traders should look out for.

All eyes on the Fed and U.S. inflation
Stocks saw records last week with the S&P 500 hitting all-time highs. Despite a lower overall impact on Bitcoin, moves on macro markets are still more than capable of spilling over into cryptocurrency.

Upward momentum continued on Monday, with stocks futures up but a sense of foreboding building about an upcoming speech from the United States Federal Reserve.

Markets were waiting to hear news about inflation, which rumors previously suggested could target up to 4%.

This would be a perfect storm for buoying safe havens, analysts said, in an environment which has already sent the U.S. dollar index to two-year lows and flooded the market with excess liquidity from quantitative easing.

The news will come from Fed Chair Jerome Powell during its annual Economic Policy Symposium, held in Jackson Hole, Wyoming on Thursday.

“More clarity will no doubt be sought via this week’s Jackson Hole Symposium,” Ben Emons of macro analysis firm Medley Global Advisors told Bloomberg on Monday.

U.S. futures were meanwhile up on the day, while Asia set a bullish tone thanks to Washington reassuring on not blocking Chinese social media network WeChat — shares in owner Tencent rose over 4% as a result.

Analyst eyes $9,600 for BTC price “buy the dip”
On short timeframes, Bitcoin was pleasing analysts as the week began. For Cointelegraph Markets’ analyst Michaël van de Poppe, a run to lower levels was now less likely after BTC/USD avoided a retest of levels below $11,500 on Sunday night.

In a transaction analysis video on Sunday, van de Poppe added that in the event of a breakdown, the “buy the dip” level to look out for would nonetheless fall below $10,000.

“The real level I’m watching for buy the dip levels if we do break out is between $9,600 and $9,900,” he summarized.

More details: https://cointelegraph.com/news/fed-futures-and-fundamentals-5-things-to-watch-in-bitcoin-this-week