- This week’s macroeconomic market mover is the Federal Reserve Chairman Jerome Powell’s speech on October 19.
- Grayscale’s victory is all but sealed, as the US SEC does not want to appeal the court’s decision.
- Bitcoin price has flashed a trend reversal signal on the weekly chart, indicating that a downtrend is around the corner.
The main macroeconomic event for this week is the Federal Reserve Chairman Jerome Powell’s speech on October 19. With higher-than-expected Nonfarm Payrolls and Inflation numbers, the chances that Jerome Powell hints at another interest rate hike are high. However, the CME FedWatch Tool shows a 90.3% probability of policy rates remaining at 525 to 550 basis points. While the speech will likely have a short-term impact on Bitcoin price, investors need to be careful trading BTC as things could get dicey going forward.
CME FedWatch Tool
Bitcoin price weekly signal hints sell
Bitcoin price has flipped bearish on the weekly by satisfying two key conditions for reversing an uptrend – a lower low and a lower high.
Read more: Bitcoin, Ethereum worth $1.8 million stolen in a phishing incident on a fake search website
In the first week of September, Bitcoin price slashed the June first-week low at $25,941 and produced a weekly swing low at $25,386. While this move satisfies the first condition of a trend reversal, the lower high produced in the first week of October at $28,592 is the second condition. With the two conditions met, Bitcoin price has officially produced a trend reversal signal on the weekly, indicating the potential end of the 2023 rally.
Going forward, investors need to be cautious of what comes next. Bitcoin’s history suggests a massively volatile downtrend when BTC breaches a key level after a trend reversal signal.
Targets include the $25,000 psychological level, a breakdown of which could trigger a nearly 26% crash to $19,294.
A spot Bitcoin ETF can invalidate bearish signals
The US Securities and Exchange Commission (SEC) is unlikely to appeal to reconsider Grayscale’s spot Bitcoin ETF ruling, which increases the chances of a spot Bitcoin ETF approval. Regardless of this win, Bitcoin only noticed a small spike in uptrend, which failed to sustain.
Read more: Bitcoin price surges as SEC misses appeal deadline for Grayscale GBTC conversion to spot BTC ETF
Hence, approval of spot Bitcoin ETF is the only outlook strong enough to kickstart an uptrend for BTC by invalidating the bearish outlook described above.
Other reads:
SBF trial prosecutors defy court’s moratorium for a five-page evidentiary letter 11 PM Friday
Bitcoin Weekly Forecast: Can BTC bears challenge crypto’s 2023 bull rally?
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
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
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.
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.