Bitcoin analyst predicts Fed will support bulls.

Bitcoin (BTC) remained below $25,000 on June 15 after an immediate reaction to changes in United States economic policy resulted in three-month lows.

Hawkish Powell “all bark, no bite”

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it consolidated after the prior day’s losses, which totaled over 3%.

The U.S. Federal Reserve had delivered an expected pause in interest rate hikes — its first since 2021 — while maintaining a hawkish stance. Fed chair Jerome Powell suggested that fresh hikes may be necessary in the future to control inflation.

“As I noted earlier, nearly all committee participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” he said at a press conference, referring to the views of the Federal Open Market Committee (FOMC).

“But at this meeting, considering how far and how fast we have moved, we judged it prudent to hold the target range steady to allow the committee to assess additional information and its implications for monetary policy.”

On that day, markets gave more than a 70% chance of a hike at the next FOMC meeting in July, according to data from CME Group’s FedWatch Tool.

The mixed signals added additional downward pressure to already fragile crypto price performance.

However, not everyone had a pessimistic outlook. Analyzing the Fed event, Keith Alan, a co-founder of monitoring resource Material Indicators, described Powell as “all bark, no bite.”

“He telegraphed super hawkish to tame markets, but executed a super dovish pause,” he told Twitter followers.

“Pick your targets.”

An accompanying chart showed major support zones for BTC/USD that have formed since 2018.

More BTC price volatility to come

Furthermore, other analyses suggested that the situation for BTC price action might become more interesting.

Related: US Bitcoin supply fell over 10% in the past year — Glassnode

Trading suite DecenTrader noted that Bitcoin was approaching an area of leveraged long liquidity.

#Bitcoin is slowly getting closer the the 3x Long Liquidity. Starts at $23,100. https://t.co/PWkS078rnF pic.twitter.com/b0iPBloAsB

— Decentrader (@decentrader) June 15, 2023

“Again: volatility is incoming,” Maartunn, a contributor at on-chain analytics platform CryptoQuant, emphasized on the day.

“While the price of bitcoin is going sideways, open interest has increased by 439 million dollars. Different from previous occasions, Funding Rates are trending down, close to neutral. Suggestion longs and shorts are in (almost) in balance).”

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