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Bitcoin (BTC) reached new weekly peaks following the Wall Street opening on September 28, as traders looked for new insights from the United States Federal Reserve.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin triggers volatility ahead of Powell’s address
Data from Cointelegraph Markets Pro and TradingView indicated that BTC’s price strength made a comeback on September 28, having experienced what some described as a typical “pump and dump” the previous day.
During that event, Bitstamp recorded highs of $26,823 due to a 2% daily increase before Bitcoin reversed all its gains.
A gradual ascent then took place, with bulls approaching the $27,000 mark at the time of this report.
Bitcoin seemed to respond positively to the latest U.S. macroeconomic data releases.
The gross domestic product for Q2 increased by 1.7% year on year — falling short of the anticipated 2.0% — while the Personal Consumption Expenditures (PCE) index data for August met expectations.
“Bring on the volatility,” stated Keith Alan, co-founder of the monitoring resource Material Indicators, to his followers on X (formerly Twitter) prior to the event.
Data from the Binance BTC/USD order book shared by Alan revealed minimal resistance below the $27,000 level.
Marked up #FireCharts to help you see the Weekly/Monthly range for #BTC. pic.twitter.com/LQs8i2rZcV
— Keith Alan (@KAProductions) September 28, 2023
In the meantime, the macro data served merely as an introduction to the day’s main highlight, with Jerome Powell, chair of the Federal Reserve, expected to speak later.
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Powell, whose recent comments did not generate significant volatility in crypto markets, was scheduled to address the Fed’s “Conversation with the Chair: A Teacher Town Hall Meeting” event in Washington, D.C. at 4:00 pm Eastern Time (8:00 pm UTC).
BTC price not yet secure
In discussing the current situation in Bitcoin markets, well-known trader and analyst Daan Crypto Trades expressed a more favorable view of the day’s movement compared to September 27.
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“Back to yesterday’s highs but with significantly less Open Interest,” he observed.
“No doubt there’s longs chasing here but it’s less frothy than it was yesterday. Would still like to see longs chill out to not get a full retrace later on.”
BTC/USD chart with open interest data. Source: Daan Crypto Trades/X
An accompanying chart monitored open interest as BTC/USD advanced.
Another trader and analyst, Rekt Capital, highlighted significant resistance trend lines currently in effect, indicating that Bitcoin must surpass them to achieve a more meaningful trend shift.
#BTC is right back at the Bull Market Support Band cluster of moving averages, challenging to breakout beyond them$BTC #Crypto #Bitcoin pic.twitter.com/c32BiQOwJ5
— Rekt Capital (@rektcapital) September 28, 2023
In a broader analysis, Rekt Capital noted that $29,000 could resurface while still being part of a larger decline for Bitcoin.
“It’s important to remember that Bitcoin could technically rally to even as high as ~$29,000 to form a new Lower High (Phase A-B),” he clarified alongside a chart.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
