Bitcoin forgets Fed as trader eyes classic BTC price 'liquidity hunt'
Bitcoin (BTC) remained stuck inside a narrow range into May 20 as cryptocurrency markets shook off United States macro triggers.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading just below $27,000.
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.
SUMMARY OF POWELL SPEECH (5/19/23):1. Inflation "far above 2% objective"2. Committed to getting inflation to 2%3. Unclear if rates are "sufficiently restrictive"4. Failure to lower inflation prolongs pain5. Will "take time" to lower inflationTons of uncertainty 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.
A further post noted that the early signals were there for the status quo to be disrupted.
$BTC Binance Open InterestMinimal price movement yet, positions flowing into the market againAlways precedes a liquidity hunt especially in this current environment pic.twitter.com/exvwCTcci6
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
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