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

Bitcoin (BTC) remained stuck inside a narrow variety 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 just listed below $27,000. The set had seen short volatility after Jerome Powell, Chair of the Federal Reserve, offered new commentary on policy and the outlook for inflation.While leaving the door open for modification need to it be required, Powells language did not provide danger possessions clear signals. Responding, financial commentary resource, The Kobeissi Letter, cautioned that “lots of uncertainty” lay ahead.SUMMARY OF POWELL SPEECH (5/19/23):1. Inflation “far above 2% objective” 2. Dedicated to getting inflation to 2% 3. Uncertain if rates are “sufficiently limiting” 4. Failure to lower inflation prolongs pain5. Will “take some time” to lower inflationTons of unpredictability ahead.– The Kobeissi Letter (@KobeissiLetter) May 19, 2023

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

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

Bitcoin however quickly forgot the occasion, returning to a range already familiar from the weekend prior.Assessing the climate on exchanges, popular trader Skew argued that a fresh volatility was just a matter of time. “Very tight illiquid range 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 existing environment pic.twitter.com/exvwCTcci6— Skew Δ (@ 52kskew) May 20, 2023

Fellow trader Crypto Tony meanwhile forecast that the variety would stay in location up until the start of the brand-new macro trading week.A close above or below the levels marked on an accompanying 4-hour chart, he added, would form cause to reevaluate the marketplace.$ BTC/ $USD – Update I anticipate 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 preferred. We recognize the variety, set alerts and await the beast to break the cage pic.twitter.com/1B7wB5uqCc— Crypto Tony (@CryptoTony__) May 20, 2023

” Expecting another week of chop before the big sell off,” part of Twitter commentary stated the day prior. Anticipating another week of chop before the huge sell off. Thats when Ill jump back in, when Twitter thinks we are going back to absolutely no pic.twitter.com/hakZMRmdGU— IncomeSharks (@IncomeSharks) May 19, 2023

Fellow trader Crypto Tony on the other hand anticipated that the range would remain in place till the start of the new macro trading week.A close above or below the levels marked on an accompanying 4-hour chart, he added, would form cause to reassess the market.

Other Questions People Ask

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

The phrase indicates that Bitcoin is currently disregarding the Federal Reserve's recent comments and is instead focusing on potential price movements driven by liquidity. Traders are anticipating a volatility spike as positions flow back into the market, suggesting that a liquidity hunt may be imminent. This behavior reflects the market's tendency to react to trading patterns rather than macroeconomic signals.

How does Jerome Powell's speech impact Bitcoin as traders focus on a liquidity hunt?

Jerome Powell's speech introduced uncertainty regarding inflation and interest rates, which typically influences risk assets like Bitcoin. However, traders are currently more focused on the technical aspects of BTC price movements, indicating a shift in attention from macroeconomic factors to market dynamics. This could lead to a liquidity hunt as traders position themselves for potential breakout scenarios.

What are traders expecting from Bitcoin in light of the current liquidity hunt scenario?

Traders expect Bitcoin to remain within a narrow trading range until significant market movements occur, potentially triggered by a liquidity hunt. Many analysts predict that a breakout could happen soon, especially as positions are building up in the market. This anticipation reflects a broader strategy where traders are waiting for clear signals before making substantial moves.

Why is Bitcoin's price action described as being in a 'liquidity hunt' phase?

Bitcoin's price action is characterized as being in a 'liquidity hunt' phase due to the tight trading range and the influx of new positions in the market. This environment often precedes significant price movements as traders seek to capitalize on volatility. The current situation suggests that many are poised for a breakout, either upwards or downwards, depending on market conditions.

What should traders look for to identify a potential breakout in Bitcoin's price?

Traders should monitor key support and resistance levels to identify potential breakout points in Bitcoin's price. A close above or below these levels could signal a significant shift in market sentiment and trigger a liquidity hunt. Additionally, observing trading volume and market sentiment can provide insights into whether the breakout will be sustained or lead to further consolidation.