• Bitcoin price goes nowhere Monday as traders await a key event.
  • BTC could be at risk of tanking nearly 12% if the catalyst disfavors  bulls.
  • Expect to see a very binary outcome by Tuesday.

Bitcoin (BTC) price sees traders bracing for a big key event that is set to take place on Tuesday. The big event at hand is the US Senate hearing , where Fed Chair Jerome Powell will testify on Tuesday and Wednesday. Without hearing from Powell for over three weeks now, markets will want to hear if Powell has changed his mind about his disinflationary message from February. 

Bitcoin price at risk of 12% drop if Powell changes tone

Bitcoin price is under pressure this Monday as traders will want to keep their powder dry for the main event on Tuesday as Fed Chair Powell is set to take the stage in the US Senate hearing. Markets will dissect his speech for any words or clues pointing to either Powell sticking to his disinflationary plan or backtracking and mentioning that the policy tightening needs to be fired up again. That last outcome would be a big blow to risk assets and could erase the gains from the past weeks in a heartbeat.

BTC is thus in a difficult position with price action opening below the 55-day Simple Moving Average (SMA). With thin volumes, a small slide toward $21,969 looks plausible to find support and await the Powell speech on Tuesday. Should that speech be negative for risk assets, expect a quick decline toward $19,500 with the 200-day SMA and the monthly S2 support level coming in as support to catch the correction.

BTC/USD daily chart

BTC/USD daily chart

Should support at $21,969 hold, bulls could be very interested in scoping up some Bitcoins here as the psychological level of $22,000 might play its role. Should that fall in line with the message from Powell that the last few data points were one-offs and do not change the view of the Fed that inflation will still come down substantially, a big pop higher is guaranteed. BTC would jump above $23,878 and test the double-top from February near $25,245.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP