Despite rebounding in yesterday's session, bitcoin failed to stabilize above $ 50,000. The difficulty for BTC to defend this bar looms large in doubt over the near-term future of crypto. In relation to this situation, the inventor of the Bollinger Bands, John Bollinger, urges his Twitter followers to pay attention to any movement in BTC.
He wrote on his Twitter account:
Time to be careful: $ BTCUSD Look closely, maybe take a profit or cover yourself up a bit… Aggressive traders may think of putting up shorts. Forex traders may look to add positions at lower levels if we see them. No confirmation for the moment, stay on the alert. #Bitcoin
How far can Bitcoin fall?
We are far from the forecast of Nunya Biznis who asserted that the price of bitcoin would double at the end of September. The most feasible scenario for the short term is a correction but that should not harm the uptrend for the long term. The depth of the correction: this is what interests everyone.
If Bitcoin is expected to undergo a correction, experts are not ruling out the possibility of a return to the $ 40,000 mark. For Michaël Van de Poppe, if Bitcoin fails to defend the supports of $ 47,000 and $ 48,000, a break towards $ 42,000 – $ 44,000 is indeed plausible. The author of the newspaper " Wolf Den Newsletter Scott Melker predicts a fall in Bitcoin between $ 41,000 and $ 42,000. However, Scott does not believe this decline is bad for bitcoin as crypto will rebound to test higher highs.
Fed meeting could confirm correction
From today, this will be the most important monetary policy event for financial markets in the United States. Indeed, the fate of the market will be sealed during the " Fed’s Jackson Hole Economic Symposium Which will take place this year, like last year, by videoconference. It will end on August 28. Unlike last year when the focus was on the economic recovery, this year the Fed is very concerned about the inflation situation, which already reached 5.4% at an annual rate in July according to statistics from the Labor Department.
Although the delta variant could hurt the recovery a bit, experts believe the Fed could let the markets go by considering cutting monthly bond purchases of the $ 120 billion. Even if we don't know when. The Fed's tapering would give a real sledgehammer to the markets which have so far outperformed thanks to the infusion of liquidity from the Fed. Given Bitcoin's correlation with the equity market, bitcoin may also correct itself.