More BTC wallets are getting red!
While ahead of Powell's speech in Jackson, whole financial markets around the globe were getting more cautious, Glassnode's On-Chain data show that more wallet's turning red as of Aug. 23 than at any time in the past month. Now we have more than 17.5 million wallets that are losing with red colors at the top as emotional Trading takes over the market.
Bitcoin could not pass the key resistance level at 25,240 USD and returned under 20 DMA. This is while during the past week, more than five times tested the 20,000 area and again returned higher. This attempt to build support at the $21,000 causes this fear that in case of breaching this level, it can end up with an enormous crash.
This weakness in the crypto market is aligned with the trend of other risky markets, including stock markets.
While last night and after Wall Street Journal report about the latest US-China agreement, US leading indices closed higher, today future markets are trading in red again, as caution trade is returned. On Thursday, Wall Street Journal reported that US and China could agree on inspecting US-listed Chinese companies by American accounting regulators; this report decreased the market risk and helped the stock markets to increase at the last trading hours of Thursday's North American season.
Yesterday we had some important speeches as well. Fed officials George and Bostic spoke. Kansas Fed President George pointed out that discussing September expectations is too early. Still, overall there is ample room for rate hikes, and the Fed may "have to hike rates beyond 4%" in the future to see broader price relief, but this ultimately remains to be seen, and then act based on economic data. In addition, Atlanta Fed President Bostic took a more hawkish stance. He said that a 75 basis points rate hike in September would be appropriate if the data remains strong.
On the data front, today, we will have the Personal income and Spending with the PCE price index, which is the FED inflation measure. Moreover, just a few hours later, investors will focus on FEDchairman Powell's speech at Jackson Hole Symposium. Any hawkish stance can also add pressure on the cryptocurrency market and vice-versa.
From the technical point of view, while the price is decreasing under 20 DMA, the market momentum is increasing, signaling that the current downtrend can continue unless the stochastic's main line breaks the signal line from down to up for the second time.
