Cryptos put on slight gains as the market awaits Friday’s Jackson Hole meeting
NEW YORK (Aug 24) Bitcoin (BTC) and the wider cryptocurrency market experienced slight gains in trading on Tuesday amid a bout of bad economic data in the U.S., including the lowest Purchasing Managers Index (PMI) print since May 2020.
Activity in the crypto market remains relatively subdued ahead of Friday’s Jackson Hole meeting, with BTC trading in a range between support at $20,900 and resistance at $21,700 and showing no signs of an impending breakout. At the time of writing, Bitcoin is trading at a price of $21,500.
BTC/USD 4-hour chart. Source: TradingView
As noted in the morning Bitcoin brief from Kitco’s senior market analyst Jim Wyckoff, “Bears have the slight overall near-term technical advantage as a two-month-old price uptrend on the daily bar chart has been negated. Prices this week are pausing as bulls work to stabilize the market after the recent selling pressure. More sideways price action this week would begin to suggest a near-term market bottom is in place.”
What to expect from Jackson Hole
The flat action in the market since August 19 indicates that “investors remain on the sidelines for now,” according to David Lifchitz, managing partner and chief investment officer at ExoAlpha. This is actually a good sign for Lifchitz, who noted that the recent selloff could have seen BTC dip all the way to support at $19,000.
Lifchitz added that Bitcoin is “not out of the woods yet,” noting that actions from the Federal Reserve have “been driving the price action this year.” With the Fed’s annual meeting at Jackson Hole scheduled for this coming Friday, any major revelations are likely to have an effect on crypto prices.
“So far, markets have been hoping (and have positioned for) a dovish Fed, but the Fed mentioned that its highest priority is to get inflation back down, and not pleasing the markets,” Lifchitz said. “The next Fed decision on rates is on Sep.21st, but it could also announce an intermediate rate hike at the Jackson Hole meeting or shortly after.”
KITCO
