A widely followed crypto analyst says that Fed Chair Jerome Powell’s tone during his next speech could serve as a catalyst that sparks a fresh Bitcoin (BTC) rally.
In a new video update, popular crypto trader Benjamin Cowen tells his 771,000 YouTube subscribers that if Powell appears to extend an olive branch during his next speech, Bitcoin could skyrocket to around $25,000.
However, Cowen notes that the leading digital asset is unlikely to soar past that level.
“If Powell were to come out next week and all of a sudden be a lot more dovish than we’ve heard him be in a long time, then you could see a breakout back above the bull market support band ($25,000)…
If Powell were to come out with any dovishness to his tone, then [BTC] can pop up a little bit. I’m not saying it’s going to go back to like $40,000 or $50,000 anytime soon. But you could see volatility. We were at $25,000 just a couple of months ago.”
Cowen goes on to note that his outlook largely depends on what the Fed discloses during its next meeting. He says talks of the Fed pivoting on their current position are what could ignite a short-term rally for the king crypto, adding that he expects volatility coming out of the crypto industry’s current bear market.
“A lot of it’s going to depend on guidance that we get at the next FOMC [Federal Open Market Committee] meeting.
If there’s any talk of a future pivot, I will be clear, even when the FED does pivot, while it easily could lead to a rally in the short term, like prior accumulation phases coming out of bear markets, you tend to just sort of chop around for a while before you actually go to new all-time highs.
We’re still in the process of figuring out [if] the bear market is over [and if] the bottom is in.”
Bitcoin is changing hands for $20,387 at time of writing, a fractional loss on the day.
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