In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at the the impact an upcoming speech from US Fed Chair Jerome Powell could have on Bitcoin price action.
Take a look at the video below.
VIDEO: Bitcoin Price Analysis (BTCUSD): August 25, 2022
The US Fed Reserve Chair Jerome Powell will speak at the global central banking conference in Jackson Hole, Wyoming, focusing on the future economic outlook. Depending on if that outlook is hawkish or dovish, Bitcoin could sink further or begin to soar.
Daily BTCUSD Looks Dangerous As Bears Remain Dominant
On daily timeframes the picture overall isn’t looking very positive for BTCUSD and could imply that the market should expect negative news tomorrow. From top to bottom, starting with the Ichiomoku, we can see that Bitcoin lost the cloud as support and is now trading below both the Tenkan-sen and Kijun-sen. These two lines have also recently crossed bearish.
The daily LMACD is also showing momentum in favor of bears. The bearish momentum is weakening, however, but could pick right back up tomorrow as markets price in whatever Powell has to say about the future of the US economy.
Finally, the Average Directional Index shows that bears are in control, and the trend is back at around a reading of 20. Below 20 would suggest a trend weakening, while retesting the level and then rising higher could restart the bearish trend.
The daily timeframe has recently turned bearish | Source: BTCUSD on TradingView.com
Weekly Momentum Highlights Pivotal Potential Turning Point
Switching to the same tools on the weekly timeframe also shows Bitcoin and the rest of the crypto market at a pivotal moment. Price was rejected from above to back below the Tenkan-sen. The LMACD is also still crossed bearish and ready to either cross up or diverge downward further.
The ADX shows that bears still have the upper hand, but the trend has started to flatten which could indicate that the worst is over on higher timeframes.
With only a week remaining in the month of August, combined with both Powell’s comments and the weekly timeframe at a pivotal turning point, we should get a clearer picture soon regarding if a bull trend is blossoming, or if the bearish trend is about to worsen.
Weekly momentum could cross up or continue down further | Source: BTCUSD on TradingView.com
Monthly Ichimoku Sends Mixed Signals To The Market
The monthly
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