Following the United States Fed chair’s address, the flagship cryptocurrency temporarily lost its footing, indicating that markets had not yet taken Jerome Powell’s somewhat aggressive remarks into account.
The current price of bitcoin is $20,674.51, and there is $39 billion worth of trades every day. 4.10% less Bitcoin was traded the previous day. Less than $1 trillion worth of crypto assets were traded globally, a drop of 4.11% from the previous day.
For the day, 71,726 traders were liquidated, totalling $237.07 million in liquidations.
In a much-anticipated address at the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, Federal Reserve Chair Jerome Powell predicted that restrictive monetary policy will likely be needed for some time.
According to Powell, “restoring pricing stability will take some time and requires employing our tools, forcibly to bring demand and supply into better equilibrium.”
The greatest single liquidation order, worth $1.91 million, was placed on FTX for BTC-PERP.
There might still be more suffering for bitcoin. A weekly chart momentum indicator, which is likely to flash the first bearish signal in more than three years, is sending this message.
In a week or two, Bitcoin’s 50-week simple moving average (SMA), which is now drifting downward, is expected to cross below the 100-week SMA, marking the first bearish crossover since February 2019.
The forthcoming bearish cross should, in principle, indicate a deepening of the bearish momentum, but the signal has a flawless track record of catching sellers on the wrong side of the market, similar to the negative SMA crossing that was confirmed on the three-day chart last month.
