Bitcoin price likely to fall 5% despite Powell's bullish thesis for Bitcoin

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.