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Bitcoin’s Climb to $27K: All Eyes on Federal Reserve’s Powell

Bitcoin might rally to as high as $29,000 to establish a new Lower High as part of a broader price movement.

by Isaac lane
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Bitcoin experienced a surge in its price following the Wall Street opening on September 28 as markets eagerly awaited signals from the United States Federal Reserve.

Bitcoin’s Volatility Ahead of Powell’s Speech

BTC price action gained momentum during the day, with a surge in what some described as a classic “pump and dump” move just 24 hours earlier. It briefly reached highs of $26,823 on Bitstamp with a 2% daily gain before retracing its progress.

BTC/USD 1-hour chart. Source: TradingView

Following this, Bitcoin continued its ascent at a slower pace, approaching the $27,000 mark.

The cryptocurrency seemed to respond positively to the latest U.S. macroeconomic data, which indicated a 1.7% year-on-year growth in GDP for Q2, slightly below the projected 2.0%. Additionally, the Personal Consumption Expenditures (PCE) index data for August was in line with expectations.

Awaiting Jerome Powell’s Remarks

The U.S. macro data served as a prelude to the main event of the day: Jerome Powell, Chair of the Federal Reserve, was scheduled to speak later at the Fed’s “Conversation with the Chair: A Teacher Town Hall Meeting” event in Washington, D.C. Powell’s recent statements did not significantly impact crypto markets, and his remarks were closely monitored by investors.

Market Analysis and Key Resistance

Some traders remained optimistic about Bitcoin’s price action for the day, noting a stronger move compared to September 27. However, they also highlighted the need for caution among long positions to avoid potential retracements.

BTC/USD chart with open interest data. Source: Daan Crypto Trades/X

Analysts pointed out key resistance trendlines that Bitcoin needed to overcome for a substantial trend change. It was suggested that Bitcoin might rally to as high as $29,000 to establish a new Lower High as part of a broader price movement.

Bitcoin’s price remained subject to volatility and potential trend changes, with Powell’s comments serving as a significant driver of market sentiment.

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