Bitcoin Awaits Powell as $104K Stalls

Bitcoin remained relatively quiet over the past 24 hours, slipping just 0.51% on the day, while altcoins experienced a broader pullback of 3% or more. Given the outsized rallies we've seen across the altcoin space, this retracement is not only expected but healthy. Such corrections are essential to sustain bullish structures and maintain the integrity of an ongoing bull run.

While Bitcoin consolidates, overnight headlines added an interesting twist. Former President Donald Trump made positive remarks about crypto, stating, "I'm a big crypto fan", and expressing confidence that the US is ahead of China in the digital asset race. In earlier cycles, such comments would have likely sparked an immediate surge in Bitcoin’s price. However, the muted reaction this time reflects the growing maturity and resilience of the asset class.

JP Morgan's Blockchain Milestone

In a significant development, JP Morgan has successfully settled a public blockchain transaction in collaboration with crypto projects Chainlink and Ondo Finance. This marks a pivotal moment for the $4 trillion asset manager, signalling a tangible shift from exploration to active participation in blockchain technology. More importantly, it suggests a broader willingness among traditional finance giants to engage in meaningful cooperation with decentralised networks, hinting at a deeper institutional embrace of blockchain integration.

Market Focus: Powell’s Speech Tonight

All eyes are now on Federal Reserve Chair Jerome Powell, who is scheduled to speak tonight at 10:40pm AEST. With this week’s softer inflation data and the ongoing discussions surrounding the US-China trade agreement, markets are bracing for potential clues on interest rate policy.

The tone Powell adopts will be crucial. Should he maintain the balanced, non-committal stance we saw at the last FOMC press conference, Bitcoin is likely to continue its current consolidation phase. However, a more hawkish outlook could trigger a sell-off in risk-on assets, including crypto. Conversely, a dovish tone would likely fuel a renewed rally, propelling Bitcoin back towards its all-time high at $109,500. On the flip side, a more hawkish tone could see Bitcoin losing its footing, potentially testing the psychological $100,000 support.

Stormrake Spotlight: Bittensor (TAO) ($458)

TAO continues to consolidate, slipping 1.43% but holding firmly within its tight range above the CPR support at $440. Impressively, TAO has retested this level every day since breaking above it five days ago. The repeated defence of this level suggests a solid base is forming, with buyers stepping in consistently as the broader market remains in sideways motion.

BTC/USD Key Levels and Price Action:

Bitcoin has dipped back below the critical $104,000 level and, despite multiple attempts, has struggled to reclaim it. Momentum indicators remain neutral, with the key moving averages converging and moving sideways. This paints a clear picture of consolidation, with the market awaiting a Powell-driven catalyst for the next decisive move. For now, immediate support is holding at $101,800.

BTC Total ETF Flows for 14 May: + 86.6 million

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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