Crypto Market Watch: What’s In Store For Bitcoin Price Ahead of Federal Reserve Chairman’s Speech

On Feb 6, 2023

Bitcoin ended last week with a bearish trend for the first time in five weeks. It reached a high of $24k but dropped to below $23k during Monday’s Asian trading session. According to Coinglass, over $97 million was liquidated in the cryptocurrency market as traders took profits.

Moreover, there has been a shift in crypto funds moving from big-cap to small-cap altcoins such as BabyDoge, which rose over 200% in the past week.

As Bitcoin’s price is retesting the lower support level of a rising channel in a four-hour time frame, concerns of a market collapse have grown in the crypto community. Also, a well-known analyst known as il Capo of Crypto believes that Bitcoin’s price should not drop below $22.5K to maintain its bullish trend.

A break below 22500 is the bearish confirmation. Current bear market rally has created the perfect environment for people to keep buying all the dips when the current trend reverses.
Perfect scenario for a capitulation event in the next few weeks.
— il Capo Of Crypto (@CryptoCapo_) February 5, 2023

The crypto community is advised to stay alert for significant news, such as Federal Reserve Chairman Jerome Powell’s upcoming statement tomorrow. Powell holds significant power over the dollar and interest rates, which have caused inflation to soar.

Many analysts predict a recession later this year or early next year, and crypto investors are warned to keep this in mind as it could affect prices. However, the CEO of Wave Financial, Siemer, is more optimistic and believes that the recession will not be as severe as previous ones. He cites the resilience of consumers and the fact that the Fed’s actions are having a gradual effect, though the full impact on the economy may not be seen for another quarter or two.