Bitcoin forgets Fed as trader eyes classic BTC price ‘liquidity hunt’

Trading resource Stockmoney Lizards agreed, forecasting that a breakdown was due while referencing the “head and shoulders” pattern went over throughout trading circles in recent weeks.”Correction in play,” it summed up, using a target zone of around $24,500. BTC/USD annotated chart. Source: Stockmoney Lizards/ TwitterMagazine: Moral responsibility: Can blockchain truly enhance trust in AI?This post does not contain investment recommendations or recommendations. Every financial investment and trading move includes danger, and readers need to conduct their own research when deciding.

Bitcoin (BTC) stayed stuck inside a narrow range into May 20 as cryptocurrency markets shook off United States macro triggers.BTC/ USD 1-hour candle chart on Bitstamp. Source: TradingViewPowell leaves market with “lots of unpredictability” Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading simply listed below $27,000. The pair had actually seen brief volatility after Jerome Powell, chair of the Federal Reserve, offered brand-new commentary on policy and the outlook for inflation.While leaving the door open for change should it be required, Powells language did not provide threat assets clear signals. Responding, the monetary commentary resource, The Kobeissi Letter, warned that “lots of uncertainty” lay ahead.SUMMARY OF POWELL SPEECH (5/19/23):1. Inflation “far above 2% goal” 2. Devoted to getting inflation to 2% 3. Unclear if rates are “sufficiently restrictive” 4. Failure to lower inflation extends pain5. Will “take some time” to lower inflationTons of uncertainty ahead.– The Kobeissi Letter (@KobeissiLetter) May 19, 2023

Bitcoin quickly forgot the event, returning to a range already familiar from the previous weekend.Assessing the environment on exchanges, popular trader Skew argued that fresh volatility was only a matter of time. “Very tight illiquid variety here between post friday FED speakers.$ BTC Binance Open InterestMinimal price motion yet, positions streaming into the market againAlways precedes a liquidity hunt specifically in this present environment pic.twitter.com/exvwCTcci6— Skew Δ (@ 52kskew) May 20, 2023

Fellow trader Crypto Tony meanwhile forecasted that the variety would remain in place up until the start of the new macro trading week.A close above or below the levels marked on an accompanying four-hour chart, he added, would form cause to reassess the marketplace.$ BTC/ $USD – Update I expect we will remain in this range all weekend no doubt, bit we play the breakout if it does come today, tomorrow, next year … Breakout plays are my favourite. We recognize the variety, set informs and wait on the monster to break the cage pic.twitter.com/1B7wB5uqCc— Crypto Tony (@CryptoTony__) May 20, 2023

Bitcoin (BTC) remained stuck inside a narrow range into May 20 as cryptocurrency markets shook off United States macro triggers.BTC/ USD 1-hour candle chart on Bitstamp. Source: TradingViewPowell leaves market with “heaps of unpredictability” Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD trading simply listed below $27,000. Inflation “far above 2% objective” 2.$ BTC Binance Open InterestMinimal rate motion yet, positions streaming into the market againAlways precedes a liquidity hunt particularly in this present environment pic.twitter.com/exvwCTcci6— Skew Δ (@ 52kskew) May 20, 2023

Fellow trader Crypto Tony meanwhile forecasted that the range would remain in location up until the start of the brand-new macro trading week.A close above or below the levels marked on an accompanying four-hour chart, he included, would form cause to reevaluate the market.

Caution over “big sell off” for BitcoinOthers were bearish on the instant future when it came to BTC rate performance.Related: Hyperbitcoinization coming, states Bitcoin OG as wholecoiners hit 1 millionPopular analytics account IncomeSharks warned that a much deeper correction was expected however need to not emerge for another week.” Expecting another week of slice before the huge sell,” part of Twitter commentary stated the day prior. #Bitcoin – The red squiggles surprisingly precise up until now. Double rejection on the 4h supertrend. Anticipating another week of slice before the huge sell. Thats when Ill jump back in, when Twitter thinks we are going back to zero pic.twitter.com/hakZMRmdGU— IncomeSharks (@IncomeSharks) May 19, 2023

Other Questions People Ask

What does it mean when Bitcoin forgets Fed as trader eyes classic BTC price ‘liquidity hunt’?

When Bitcoin forgets the Federal Reserve's influence, it indicates that traders are focusing on technical patterns rather than macroeconomic news. The term 'liquidity hunt' refers to the search for price movements that can trigger significant trading activity, often leading to volatility. As traders assess the current market conditions, they may anticipate a breakout from the narrow range BTC has been trading in, which could lead to increased liquidity and price action.

How does the 'head and shoulders' pattern relate to Bitcoin's current price action?

The 'head and shoulders' pattern is a classic technical analysis indicator that suggests a potential reversal in price trends. In the context of Bitcoin, traders are using this pattern to forecast a possible breakdown, with a target zone around $24,500. This pattern's recognition among traders indicates a collective sentiment that could influence future price movements as they prepare for potential volatility.

What are traders expecting from Bitcoin's price movement in the coming days?

Traders are currently expecting Bitcoin to remain within a tight range until the new macro trading week begins. Analysts like Crypto Tony suggest that a breakout above or below established levels will be crucial for reassessing market conditions. Additionally, some traders anticipate a deeper correction may occur, but not until after another week of sideways trading, indicating a cautious approach to entering new positions.

Why is there 'lots of unpredictability' in the Bitcoin market following Powell's speech?

Jerome Powell's recent comments on inflation and monetary policy have left the market with 'lots of unpredictability,' as he did not provide clear signals for risk assets like Bitcoin. Traders are interpreting this uncertainty as a factor that could lead to increased volatility in BTC prices. The lack of definitive guidance from the Fed means that traders must rely more on technical analysis and market sentiment to navigate potential price movements.

What should investors consider before making moves in Bitcoin amidst current market conditions?

Investors should conduct thorough research and consider the current market conditions before making any moves in Bitcoin. With the potential for a liquidity hunt and the presence of bearish sentiment among some analysts, caution is advised. It's essential to monitor technical indicators and be prepared for sudden price shifts, especially given the uncertainty stemming from macroeconomic factors like inflation and Fed policy.