Bitcoin Rally Hits Resistance at $80,000 Amid Awaited Monetary Policy Cues
Bitcoin's recent rally has stalled at around $80,000 as traders await key US monetary policy signals. The largest cryptocurrency advanced 1% on Wednesday to about $79,000 but has given up gains since briefly breaking through $81,000 on Tuesday.
According to Tony Sycamore of IG Australia, the pullback came due to profit-taking ahead of today's release of personal consumption expenditures price index data and an anticipated address by US Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Policy Symposium. Signs of de-escalation in the Middle East have also taken some momentum out of the rally.
Sycamore believes that it may be difficult for bitcoin to break above the $80,000 to $83,000 zone and suggests that the digital asset has 'already struck a short-term high'. However, he added that a sustained move higher could open the door for bitcoin to reach $95,000 to $100,000.