Bitcoin will get a boost from FED’s Powell

The cryptocurrency community is waiting for FED's Powell speech.
BTC/USD needs to regain ground above $11,500 to improve the short-term picture.

While Bitcoin is hovering below $11,500 after a major sell-off on Tuesday, some industry experts believe that the first digital coin may get a fresh boost later this week. The co-founder of the US-based cryptocurrency exchange Tyler Winklevoss believes that Jerome Powell may provide a strong catalyst for the coin when he delivers the speech on Thursday, August 27.

The Fed, under the leadership of Jerome Powell, continues to be #Bitcoin's biggest booster. On Thursday, he will deliver a speech about how the Fed will begin targeting higher inflation.

Many bitcoiners share the same view as they regard BTC as the key instrument against inflationary policies pursued by global central banks. Considering the limited supply of Bitcoins, the asset can be used as a store of value amid dollar depreciation and price increase.

However, a prominent gold investor Peter Schiff expressed a different point of view. Basically, he repeated his statement that Bitcoin has no value, while gold is the best anti-inflation hedge.

I think you and your brother are the biggest #Bitcoin boosters, though you do have lots of competition. All Powell is doing is distorting the purchasing power of the dollar. Anyone betting this will create value for Bitcoin is wrong. The smart money is buying #gold instead.

BTC/USD: The technical picture

Meanwhile, BTC/USD is changing hands at $11,390, down over 2% on a day-to-day basis. The first digital currency extended the decline on Tuesday after a failure to stay above $11,500. Now, this barrier serves as a local resistance that separates us from a sustainable recovery towards the upper boundary of the recent consolidation channel at $11,800 and psychological $12,000.

On the downside, a move below $11,300 will increase the selling pressure and open up the way to the intraday low of $11,250. Once it is cleared, the next strong barrier of $11,000 will come into focus, followed by the daily SMA50 at $10,730. The price has been trading above this technical barrier since the end of July.

BTC/USD daily chart

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