Cointelegraph Team
Cointelegraph
Bitcoin (BTC) hovered near $47,000 on Aug. 27 as traders took no chances on the day of the Federal Reserve's Jackson Hole summit.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
End-of-month cold feet for Bitcoin traders
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fluctuating in a range centered on $47,000 during Friday.
The past 24 hours saw little action up or down for Bitcoin as market participants awaited cues from both the Fed and the end-of-month options expiry event, this time worth some $2 billion.
"Not a very strong reaction at the moment," trader and analyst Rekt Capital commented on price action overnight.
"A Daily Close above the high-$47000s would be a positive sign of strength however."
In the event, a higher close failed to materialize, with $50,000 still remaining unchallenged after Bitcoin lost the level earlier in the week.
Cointelegraph contributor Michaël van de Poppe likewise stuck to his previous forecasts, these involving a BTC support zone around $44,000.
"This idea on Bitcoin is still my primary vision," he tweeted.
Options expiries tend to generate more fear than genuine selling pressure, with BTC price action often shrugging off the events themselves. Open interest totalled $9.19 billion Friday, a three-month high.
BTC options open interest chart. Source: Bybt
Buzzword "tapering"
As Cointelegraph reported, the Fed's virtual Jackson Hole event is tipped to shed light on future economic policy changes tied to the Coronavirus pandemic.
Asset purchases may be scaled back, a mechanism known as tapering, in what could change the mood among traditional assets as the S&P 500 trades at all-time highs.
Any hints about inflation policy may also serve to boost alternative asset demand. The U.S. dollar gained in the run-up to the Fed's debut, traditionally a point of friction for Bitcoin.
U.S. dollar currency index (DXY) 1-day candle chart. Source: TradingView
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.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
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?
Bitcoin: BTC post-halving rally could be partially priced in Premium
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?