• Bitcoin price continues to trade horizontally with technical indicators showing limited upside potential.
  • BTC could drop 5% after multi-week consolidation below the $43,750 blockade.
  • The bearish thesis will be invalidated if the price breaks and closes above $46,000.

Appearing on Monday, Federal Reserve chair Jerome Powell expressed worrisome comments about the US government's unsustainable path.

Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC to record rash move soon as Bollinger Bands contract

Powell underlines a bullish thesis for Bitcoin

Fed chair Jerome Powell said the US is on an "unsustainable path" as debt will outpace economic growth. In his opinion, investors will soon question the government's ability to pay its debt, which will push them towards dumping the US dollar in favor of a hedge. In such a turn of events, Bitcoin would pass as the best candidate for this hedge.

Bitcoin price outlook with a possible 5% drop in the works

Bitcoin price remains range-bound, consolidating between the centerline and the upper band of the Bollinger indicator at $41,882 and $44,182. The two levels appear to be coming together, a move that often precipitates an impulsive or rash move soon.

The Relative Strength Index (RSI) is bearish and could soon break below the yellow band (signal line). Tilting the odds further in favor of the bears, the Moving Average Convergence Divergence (MACD) also appears subdued below its histogram bars and could soon fall in negative territory. The Awesome Oscillators (AO) are also flattened out, a sign of dissipating bullish presence.

With this outlook, Bitcoin price could fall 5% to find support offered by the confluence between the 100-day Simple Moving Average (SMA) and the horizontal line at $40,651. Below this level, BTC could dip into the demand zone between $38,496 and $39,582.

BTC/USDT 1-day chart

On the other hand, increased buying pressure could see Bitcoin price overcome the resistance due to the upper band of the Bollinger indicator at $44,184. This could see BTC climb to $48,000, or in a highly bullish case, tag $50,000. Such a move would denote a 20% climb above current levels.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP Price Outlook: A breakout or significant price movement may be imminent for Ripple’s token

XRP Price Outlook: A breakout or significant price movement may be imminent for Ripple’s token

Ripple (XRP) price has been range-bound for a while, with token holders patiently holding as the ecosystem contended against the US Securities and Exchange Commission (SEC). As per a recent report, the payments token’s price has been stuck below $0.50, failing to breach key resistance levels.

More Ripple News

Runes token standard diminishes BRC-20 hype, thwarts Ordinals engagement a day after launch

Runes token standard diminishes BRC-20 hype, thwarts Ordinals engagement a day after launch

Bitcoin token standards have been a notable theme of late, with Ordinals and BRC-20 making headlines in the first quarter of 2024. However, there is a new player in the works, Runes, which could be the next narrative as the ecosystem continues to evolve.

More Runes News

Avalanche Price Prediction: AVAX primed for gains as altcoin nails its 37% measured move target

Avalanche Price Prediction: AVAX primed for gains as altcoin nails its 37% measured move target

Avalanche (AVAX) price, like most altcoins, is showing strength following the fourth Bitcoin (BTC) halving. The landmark event, which has inspired positive market sentiment, has capital spilling over into other cryptocurrencies, including AVAX.

More Avalanche News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

More Bitcoin News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP