Bitcoin shows bearish patterns as traders brace for Jerome Powell’s Jackson Hole speech, sparking fears of a looming price crash.
On the daily chart timescale, the bitcoin price gradually developed a very negative chart pattern, suggesting that the recent strong run may be ending.
Although the exact time of the Bitcoin drop is unknown, Jerome Powell’s impending Jackson Hole speech might serve as a trigger.
Bitcoin Price Wedge Trend Is Coming To End
According to the weekly timescale, the recent spike in the price of Bitcoin is coming to an end.
According to this chart, the Average Directional Index (ADX) is going laterally and has lost momentum at 28.
When this indicator rises, an asset is considered to be in a strong trend.
Above all, the weekly chart indicates that a rising wedge formation has been developed.
The most considerable swings since March last year are connected to form the upper half of this wedge.
The bottom trendline, however, connects the lower highs since August 2024.
The gap between the two lines is getting closer to their confluence level.
A decisive bearish breakout is typically the result of these meeting places.
The price of Bitcoin has also developed more pessimistic chart patterns.
Divergence is a bearish pattern created by oscillators such as the PPO and the Relative Strength Index (RSI).
According to the chart, the RSI indicator has made lower highs and lower lows since reaching its top of 87.75 in March of last year.
Likewise, there has been a gradual decline in the Percentage Price Oscillator.
As a result, the price of Bitcoin might undergo a significant bearish collapse due to the combination of a rising wedge and the divergences.
A move like that might cause it to fall below $100.
The wedge pattern forecasts a deeper dive than that.
The target level is $60,370 when the distance is measured in its broadest section and then extrapolated from the breakout point.
The rising wedge formation and the long-term Bitcoin price prediction will be rendered useless by a move above the resistance level at $125,000.
Jackson Hole Symposium May Affect Bitcoin Price
The forthcoming Jackson Hole Symposium could cause the Bitcoin price to collapse.
Central bank executives from all over the world gather for this annual gathering.
The speech given by the chairman of the Federal Reserve, in this case Jerome Powell, is the event’s most significant component.
This speech could be a turning point because he might allude to whether the bank will lower interest rates, as many investors anticipate, or stay tight.
Recent data indicate that both inflation and the unemployment rate are increasing, and the Fed is facing a period of stagflation.
Even worse, as the effects of Donald Trump’s tariffs expand, inflation will continue to rise.
At the same time, the president is putting more pressure on the Fed to lower interest rates.
The price of Bitcoin will therefore rise if there is any indication that the Fed will begin lowering interest rates.
On the other hand, a pessimistic perspective will be confirmed by a very gloomy signal for the status quo.
In addition, the current surge in the cryptocurrency market can be explained by the increasing chances of a cut.
