Bitcoin (BTC) remained stuck inside a narrow range into May 20 as cryptocurrency markets shook off United States macro triggers.
Powell leaves market with “tons of uncertainty”
The pair had seen brief volatility after Jerome Powell, Chair of the Federal Reserve, gave new commentary on policy and the outlook for inflation.
While leaving the door open for change should it be required, Powell’s language did not offer risk assets clear signals. Responding, financial commentary resource, The Kobeissi Letter, warned that “tons of uncertainty” lay ahead.
Bitcoin nonetheless soon forgot the event, returning to a range already familiar from the weekend prior.
Assessing the climate on exchanges, popular trader Skew argued that a fresh volatility was only a matter of time.
“Growing variance between perp & spot market; which ive posted about previously,” he summarized in part of Twitter coverage on the day.
“Very tight illiquid range here between post friday FED speakers. Expecting market to find an EQ early next week in which both spot & perp market will be forced to establish a trend.”
A further post noted that the early signals were there for the status quo to be disrupted.
Fellow trader Crypto Tony meanwhile forecast that the range would stay in place until the start of the new macro trading week.
A close above or below the levels marked on an accompanying 4-hour chart, he added, would form cause to reconsider the market.
Caution over “big sell off” for Bitcoin
Others were bearish on the immediate future when it came to BTC price performance.
Popular analytics account IncomeSharks warned that a deeper correction was expected, but should not materialize for another week.
“Expecting another week of chop before the big sell off,” part of Twitter commentary stated the day prior.
Trading resource Stockmoney Lizards agreed, predicting that a breakdown was due while referencing the “head and shoulders” pattern discussed throughout trading circles in recent weeks.
“Correction in play,” it summarized, offering a target zone around $24,500.
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