Bitcoin Price Soars Above $28.6K Before Fed Powell’s “Very Dovish” Speech

As the US economic policy speech draws closer, Bitcoin (BTC) has remained steady at around $28,500.

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Lepard: Powell may flip “very dovish”

Cointelegraph Markets Pro and TradingView data showed that BTC price action was gaining strength prior to Jerome Powell, chair of the Federal Reserve, delivering his commentary.

At 12 pm Eastern Time on Thursday, Powell was confronted with a difficult macroeconomic situation, with 10-year United States bond yields reaching its highest since 2007.

The main issue of discussion was whether Powell’s language would be dovish or hawkish, as the Global Finance Crisis of 2008 was looming in the minds of market participants.

Asset management guru Lawrence “Larry” Lepard informed X subscribers that “they can’t let the bond rout continue.”

Previously, it was assumed that the Fed would maintain high interest rates for an extended period of time due to inflation persisting beyond expectations.

However, CME Group’s FedWatch Tool data showed that the market odds of rates remaining at current levels at the next meeting of the Federal Open Market Committee (FOMC) on Nov. 1 were 88%.

Economist Mohamed El-Erian expressed his opinion on CNBC’s Squawk Box segment that rates should not rise again, which would be beneficial for risk assets, including crypto.

El-Erian stated that the message to be conveyed by Powell is that the Fed has done its part and is now done.

Bitcoin traders monitor liquidity walls

The price of BTC stayed in between the clouds of liquidity, causing volatility to decrease.

Material Indicators, an on-chain monitoring resource, showed that the same pattern was observed on the Binance order book, with important levels of support and resistance remaining unchanged despite the initial volatility of the week.

Therefore, traders kept a close eye on the more important lines further away from the spot price. Crypto Tony highlighted the $28,000 and $29,000 targets.

As reported by Cointelegraph, some significant trendlines now give a bullish outlook for Bitcoin, with buyers continuing to hold their ground.