Bitcoin, the leading cryptocurrency, surged above $81,000 last week but retreated to around $78,000 following Federal Reserve Chairman Kevin Warsh’s hawkish speech in Jackson Hole.
While BTC has been trading near the $78,000 level for the past few days, Wintermute, a prominent market maker in the cryptocurrency market, has shared his current expectations.
Accordingly, Wintermute stated that it expects Bitcoin to move between $75,000 and $82,000 until the Fed’s FOMC meeting on September 15-16.
FED’s September Meeting Could Be Critical for Bitcoin!
Wintermute’s latest market analysis stated that Warsh’s speech at the Jackson Hole Annual Meeting raised expectations for a September rate hike to 64.4%.
Therefore, Wintermute believes that the FOMC meeting on September 15-16 will be a significant catalyst for the direction of risky assets, particularly the cryptocurrency market.
Wintermute expects market interest rate expectations to be a decisive factor in Bitcoin’s trajectory, and predicts that economic data to be released in the first two weeks of September could lead to significant changes in interest rate expectations before the FOMC meeting. According to the company, the US non-farm payrolls data to be released on September 4th will be closely watched, particularly in terms of interest rate expectations and the direction of BTC.
$82,000 Resistance Stands Out in Bitcoin!
On the other hand, Wintermute noted that Bitcoin has faced repeated sell-offs around the $82,000 level following its recent surge.
According to the company, in the current situation;
“$82,000: As a significant resistance
$75,000: As the first significant support
$72,000: As a critical support” are seen.
In this context, according to the company, a weekly close below $72,000 for Bitcoin could change the current outlook. Wintermute believes that below this level, there is no clear support zone, and further downside risks could increase.
In the current scenario, Wintermute suggests that a healthier short-term move for Bitcoin might be a pullback towards the $75,000 level, clearing leveraged positions in the market, followed by a renewed attempt at upward movement. Therefore, the company believes Bitcoin could consolidate in the $75,000-$82,000 range until the FOMC meeting.
*This is not investment advice.
