Bitcoin traders who did their homework know that BTC price is set for 12%-to-26% drop

• Bitcoin price is seeing a short-term bullish push towards $21,969.
• BTC price set to collapse as a bull trap could be formed on a false break above $22,000.
• A big drop or even a falling knife could drop price action below $20,000, evaporating billions of cash in minutes.

Bitcoin (BTC) price is gearing up for a big battlefield into Friday's trading session as a big annual financial markets event and catalyst is set to happen. The event at hand is the Jackson Hole Symposium from the Fed and is known to be a must-watch event for traders in any asset class in financial markets, even cryptocurrency traders. Traders who have been preparing for this event know about the current market conditions and are aware of the risk that this event will hold, with most likely a very cold shower for investors that could trigger a collapse in Bitcoin, with prices dropping as much as 26% towards $16,000.

BTC price could be set for another June 13 rerun

Bitcoin price action already had in the past a previous moment where it tanked 15% in just one trading session, on June 13. A repetition of that same size and magnitude looks to be set as markets have been a bit too euphoric on the current US data against the Fed's narrative. Do not expect the Federal Reserve to slow down its rhetoric, as it will stay focused on its target to push inflation back to 2% and do everything it can, which means draining the markets from liquidity and triggering a deliberate collapse to stop spending. 

BTC price, from a technical point of view, is set up to trick bulls into jumping on the back of that event. With a possible break to the upside above $21,969 or even $22,000, Bitcoin bulls will jump in on the break and risk being dragged below their entry point. As this event is completely headline-driven, any word or phrase could trigger a market reaction in a matter of seconds and could see BTC price dropping like a stone towards $19,036 in its best case, or could even slip as far as $16,020, bearing 26% of losses in just a matter of minutes.

BTC/USD Daily chart

As mentioned, markets could distil some positive elements out of the speech from Fed chair Jerome Powell, and that could see some investors coming in with a lot of cash that have been sidelined for most of 2022. With that sudden wave of cash coming into the markets, BTC price could see its buy-side demand exploding with price action shooting higher as a rocket. The first level there would be $23,878 to the upside, and in case the baseline is positive, expect to see BTC hit $30,000 by the end of next week.

 

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