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 the Fed as traders eye a classic BTC price ‘liquidity hunt’?

When Bitcoin forgets the Fed, it indicates that traders are shifting their focus from macroeconomic factors, such as Federal Reserve policies, to technical trading patterns and market dynamics. The term 'liquidity hunt' refers to the search for price movements that can trigger significant buying or selling, often leading to volatility. In this context, traders are anticipating a breakout from the current narrow trading range, which could lead to substantial price action.

How does the 'head and shoulders' pattern influence Bitcoin's price predictions?

The 'head and shoulders' pattern is a classic technical analysis formation that traders use to predict potential price reversals. In the context of Bitcoin, Stockmoney Lizards highlighted this pattern as a signal for an impending breakdown, suggesting a target zone around $24,500. Traders should monitor this pattern closely, as it can provide insights into future price movements and help inform their trading strategies.

What role does Jerome Powell's commentary play in Bitcoin's market behavior?

Jerome Powell's commentary on inflation and interest rates creates significant uncertainty in the markets, impacting risk assets like Bitcoin. His statements can lead to short-term volatility, as seen when BTC/USD briefly reacted to his remarks before stabilizing. Traders often interpret such comments to gauge market sentiment and adjust their strategies accordingly, especially in light of the ongoing liquidity hunt.

Why are traders expecting a liquidity hunt in the current Bitcoin market?

Traders are expecting a liquidity hunt in the current Bitcoin market due to the tight trading range and the influx of positions entering the market. As noted by trader Skew, minimal price movement often precedes significant volatility, indicating that a breakout could be imminent. This anticipation drives traders to prepare for potential price swings, making it crucial to set alerts and monitor key levels for entry points.

What should traders consider when assessing Bitcoin's price range and potential breakout?

When assessing Bitcoin's price range and potential breakout, traders should focus on key support and resistance levels indicated on their charts. The analysis from Crypto Tony suggests that a close above or below these levels will provide critical signals for market direction. Additionally, understanding the broader market sentiment and macroeconomic influences can help traders make informed decisions during this period of uncertainty.