• Bitcoin (BTC) price held steady above $17,000 as risk asset traders awaited signals from the Federal Reserve.
• Fed Chair Jerome Powell was due to speak at a central bank conference with the expectation of a more dovish tone.
• Michael van de Poppe, founder and CEO of trading firm Eight, cautioned against overly optimistic reactions.
Bitcoin (BTC) price remained steady above $17,000 on Monday, as investors and traders waited for cues on policy from the United States Federal Reserve. With Fed Chair Jerome Powell scheduled to speak at a central bank conference, many are expecting a more dovish tone, with the latest Consumer Price Index (CPI) data due out later in the week.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after hitting $17,396 on Bitstamp the day prior — its highest since Dec. 16. The pair gained in line with gold early in the week, seeing a slight cool-off as U.S. stocks also lay in wait for potential Fed catalysts.
Commenting on the short-term BTC price action, Michaël van de Poppe, founder and CEO of trading firm Eight, cautioned against becoming overly optimistic. “Bitcoin rejecting at crucial area as Powell’s speech is approaching yesterday + simply crucial resistance zone,” he summarized in a Jan. 9 tweet. He added that BTC could potentially sweep towards $17.1K before another bounce towards $17.5K for bearish divergence, or drop to $16.9K for a long position.
Full-time Bitcoin trader George, a popular presence on social media, eyed a potential intraday range with $17,000 as support and $17,500 as resistance. He noted that the price of BTC could go either way, depending on the results of Powell’s speech.
Many are hoping for a more dovish approach to policy from the Federal Reserve. This could have a positive effect on risk assets, including Bitcoin, and could potentially lead to further price increases. The latest CPI data, due out on Thursday, will also be an important catalyst to watch. Until then, traders will be keeping a close eye on the markets and the Fed’s statements.