Fed, future and fundamentals: 5 things to observe in Bitcoin this week

Bitcoin (BTC) opens the week in a good mood, while several obstacles line up to guide the price trajectory.

Cointelegraph outlines five determining factors for the direction of BTC/USD in the coming days, alerting traders to the developments to keep an eye on.

Eyes on the Fed and inflation in the US

Last week, equity stocks saw new records and the S&P 500 reached record highs. Despite a lower overall impact on Bitcoin’s price, movements in macro markets remain more than capable of influencing cryptocurrency.

The bullish momentum continued on Monday, with the rise in equity futures, but a bad feeling is beginning to build up about the upcoming US Federal Reserve release.

The markets are waiting for news about inflation, which according to previous rumors could reach 4%.

According to analysts, this development could result in a perfect storm for the growth of safe-haven assets, in a scenario that has already sent the US dollar index to lows unexplored for two years, flooding the market with excess liquidity due to quantitative easing.

The new arrangements will be announced by Fed President Jerome Powell at the annual Economic Policy Symposium scheduled for Thursday in Jackson Hole, Wyoming.

„This week’s Jackson Hole Symposium will undoubtedly provide greater clarity,“ said Ben Emons, of macroeconomic analysis firm Medley Global Advisors, in a comment to Bloomberg on Monday.

Meanwhile, U.S. futures have increased during the day, while a positive atmosphere has returned to Asia thanks to assurances from Washington that it will not block the Chinese social media network WeChat. As a result of this development, the shares of the owner company Tencent have increased by more than 4%.

An analyst bets on $9,600 to take advantage of BTC’s price correction

On short intervals, Bitcoin Rush opened the week satisfying analysts. According to Michaël van de Poppe, analyst at Cointelegraph Markets, a correction to lower levels is now less likely after BTC/USD avoided a retest of levels below $11,500 on Sunday night.

In an analysis video published on Sunday, van de Poppe added that, in case of a breakdown, the „buy the dip“ level to keep an eye on would still be below $10,000.

„The real level I’m monitoring to take advantage of the correction, if it occurs, is between $9,600 and $9,900,“ he summarized.

Concerns about a contraction below the five-figure threshold have become less common among analysts, and van de Poppe discarded the hypothesis of a pullback around $8,000.

The last time Bitcoin’s price was below $10,000 was in late July.