Bitcoin Stuck Below $27K as Traders Brace for Breakout or Sell-Off
Bitcoin (BTC) continued to hover within a tight range around $27,000 as traders analyzed fresh market signals following remarks by Federal Reserve Chair Jerome Powell. Despite minor volatility, the leading cryptocurrency has yet to find a clear direction.
Powell’s Speech Adds Uncertainty
Powell’s latest comments on inflation and monetary policy left investors uncertain. While he reaffirmed the Fed’s commitment to reducing inflation to 2%, he offered no clear stance on whether interest rates are currently restrictive enough. Analysts warned this lack of clarity could keep markets on edge in the short term.
Financial commentary platform The Kobeissi Letter summarized the mood, noting that “tons of uncertainty” remain as investors await new economic data.
Traders Expect a Breakout
Market analysts suggested that Bitcoin’s recent sideways movement may not last much longer. Popular trader Skew noted growing divergence between spot and perpetual futures markets, often a sign of upcoming volatility.
“Very tight, illiquid range here between post-Friday Fed speakers,” Skew wrote. “Expecting market to find equilibrium early next week where both spot and perp markets will be forced to establish a trend.”
Similarly, trader Crypto Tony predicted the consolidation could extend through the weekend. “We identify the range, set alerts, and wait for the beast to break the cage,” he said, emphasizing patience before entering new trades.
Bearish Outlook for Short Term
Not all analysts are optimistic. The trading account IncomeSharks warned of potential downside, suggesting a “big sell-off” could follow another week of choppy price action.
“Expecting another week of chop before the big sell off,” the analyst stated, pointing to double rejections on Bitcoin’s 4-hour chart indicators.
Technical analysis group Stockmoney Lizards echoed the bearish view, noting a possible “head and shoulders” formation that could push Bitcoin toward the $24,500 level.
Volatility Ahead for Bitcoin
Despite the uncertain outlook, Bitcoin’s long-term fundamentals remain strong, with traders seeing every dip as a potential accumulation opportunity. Still, analysts agree the next major move — whether up or down — could be imminent as liquidity tightens and macroeconomic pressure builds.
