The price of bitcoin crashed by more than $1,000 during the London afternoon session this Wednesday.
The bitcoin-to-dollar exchange rate earlier today established an intraday high towards $13,202.63, according to data provided by CoinStats’ cryptocurrency portfolio management app. Nevertheless, a vast correction later brought the price down by more than 8 percent.
The move downhill followed Federal Reserve Chairman Jerome Powell’s hearing before a Congressional committee. The central banker strongly hinted that a rate cut is underway this month, citing prolonged trade tensions between the US and China and worries over a gloomier global economic outlook.
Powell’s dovish outlook sent the gold price higher, with the latest tally reporting a spot rate of around $1,410 per ounce. Nevertheless, bitcoin remain unfazed by the Fed’s announcement, which appeared strange because of its tandem with gold against dovish announcements.
Opportunities in Bitcoin Market
The pullback does not necessarily mean that bitcoin’s bullish bias is over. As a matter of fact, the cryptocurrency is trending inside a rising parallel channel, as shown in the Coinbase chart below.
One could expect price to extend its fall towards the channel support. A pullback action from the lower trendline could open a decent Long opportunity towards the channel resistance to the upside. Similarly, a pullback from the upper trendline could push price back towards the channel support trendline.
Overall, bitcoin’s interim upside target of $14,000, as discussed in our previous analysis, is still intact.
Where do you think the price is heading? Tell us in the comment box below.
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