The cryptocurrency market is buzzing with conjecture as continuing conversations over Bitcoin’s value trend continue.
Katie Stockton of Fairlead Strategies has thrown fuel to the fire by speculating that Bitcoin’s price could revert to the $20,000 zone, a theory that has garnered momentum given the cryptocurrency’s recent rebound from those levels earlier this year.
BTC/USD is currently trading at $26,470, up 1.65% today, and appears to be in the spotlight once more.
However, market dynamics could shift, impacted in part by Jerome Powell’s upcoming Jackson Hole address, which could be a source of volatility for crypto markets.
Despite these debates, Bitcoin miners continue to show confidence, adding to the market narrative.
Crypto Research Firm Says BTC Could Fall to $20,000
According to Katie Stockton, an analyst at Fairlead Strategies, the idea of Bitcoin returning to the $20,000 range has gained traction.
Given Bitcoin’s strong return from those levels earlier this year, Stockton’s latest comments signals a possible resurgence of this price level.
Stockton’s research also emphasizes the significance of the $25,200 level as a critical support level for Bitcoin.
If the Bitcoin falls below this level decisively, the second support level at $20,600 becomes critical.
This lower support zone can imply a 21% drop from present market levels.
Bitcoin was trading at $26,191 as of Wednesday, providing validity to the ongoing discussion about its possible movement.
Jerome Powell’s Jackson Hole Speech Poses Volatility Threat to Crypto Markets
The impending lecture by Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole Symposium is expected to have an impact on the price of Bitcoin and the broader cryptocurrency markets.
These markets, like other high-risk assets, have recently witnessed significant falls.
Bitcoin’s price, which is now hanging above the key $25,000 barrier, has remained rather constant after the steep dip on August 18, as investors take prudence ahead of the Thursday-Saturday symposium.
Powell’s speech on Friday at 14:05 GMT is expected to receive a lot of attention, with markets looking for clues about the Fed’s developing monetary policy stance and response.
If Powell takes a hawkish attitude, predicting additional rate hikes, the price of Bitcoin may fall.
In contrast, indicators that interest rates would not rise further may increase demand for risk assets such as Bitcoin.
Remember when #FED Chair #Powell spoke from Jackson Hole last year and his hawkish tone triggered a 29% #BTC dump that took 5 months to recover? 🤮#JPow returns to #JHole this Friday and there are some similarities in the PA we are seeing now and the PA we saw leading up to… pic.twitter.com/GqhsnSFgBz