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Bitcoin price has reached a traffic jam after creating an impulse across the cryptocurrency market with a slight but steady gain, and is now trapped around the $26,000 region. It comes before of the Jackson Hole symposium, which is notorious for driving stock prices to tumble in 2022.

Bitcoin's price has stalled ahead of the Jackson Hole symposium.

At the time of writing, the price of Bitcoin (BTC) is $26,119, having fallen into the demand range of $26,048 to $24,919. With this order block acting as a support level, one would anticipate robust bullish purchasing within the aforementioned area. However, traders appear to be playing it cautious, with all eyes and ears on the Wyoming meeting, which is scheduled for August 25 at 14:05 GMT.

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If history is any guide, Bitcoin's price could fall between 3.5% and 10.5% in response to the speech, as it has done from 2018 through 2022. Nonetheless, it all hinges on the Fed's attitude on inflation, to which BTC is likely to respond.

If Powell takes a hawkish position, it will spread across the crypto market, potentially driving BTC below the psychological $25,000. If, on the other hand, he adopts a less hawkish position, the market may rally, potentially setting the stage for BTC to reclaim the $28,722 level.

Obviously, a dovish posture would be preferable, with crypto supporters already chewing their nails after months of consolidation followed by a sudden drop on August 18. Traders will be searching for evidence of softening hawkishness from Powell's remarks when he takes the stage on Friday.

However, the trend of inflation in the United States is already clear, with a gradual reduction. This tips the scales in favor of a possible dovish attitude, although confirmation is required. Nonetheless, it is unclear whether the drop in inflation will necessitate a more measured or assertive approach to interest rate policy.

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Still, Powell's shift from a somewhat tight posture to a more delicate terrain has not gone unnoticed, especially as the agency's ambition to meet the 2% target remains. One thing will be clear in his mind as he approaches the floor tomorrow: managing inflation will not necessarily need job cuts.

On the other hand, in order to maintain current financial conditions, the Fed may have to prevent rate cuts, leaving the market in suspense about potential rate hikes if things shift. This strengthens the Fed's goals with the market's premise of "higher for longer."

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As a result, while the speech may not contain any new information, it is likely to emphasize the central bank's cautious attitude. Julian Brigden, a Macro Intelligence 2 authority, believes Powell's speech would likely emphasize the central bank's cautious stance rather than introducing new features. This suggests that rate cuts will be avoided in order to sustain existing financial circumstances.

A scenario in which the Fed calls for a slowdown in inflation, implying that interest rates do not need to be raised, would auger well for risky assets such as cryptocurrencies, with Bitcoin likely to lead the pack north.

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