In a dramatic turn of events, the world of cryptocurrencies witnessed a surge in Bitcoin’s price on September 28, just a day after what some experts dubbed a classic “pump and dump” episode. The crypto market, characterized by its inherent volatility, has been eagerly awaiting developments, including the release of U.S. macroeconomic data and a speech by Jerome Powell, the Chair of the Federal Reserve. This article delves into the reasons behind Bitcoin’s recent price swings, the impact of economic data, and what investors can expect as they navigate this crypto rollercoaster.

Bitcoin’s Price Rollercoaster

Bitcoin, the flagship cryptocurrency, has been known for its price volatility since its inception. On September 28, Bitcoin displayed its characteristic unpredictability by surging to highs of $26,823 on Bitstamp, with a 2% daily gain. However, this gain was short-lived, as Bitcoin swiftly retraced all its progress. Investors were left bewildered by the sudden price drop, which was reminiscent of the notorious “pump and dump” scheme.

Following this rollercoaster episode, the market witnessed a slower and steadier climb in Bitcoin’s price, with bulls inching closer to the $27,000 mark at the time of writing. This rebound seemed to be fueled by Bitcoin’s reaction to the latest U.S. macroeconomic data releases.

U.S. Macroeconomic Data Influence

Bitcoin appeared to respond positively to the release of U.S. macroeconomic data. The Gross Domestic Product (GDP) for the second quarter of the year showed a 1.7% year-on-year growth, slightly below the projected 2.0%. Additionally, the Personal Consumption Expenditures (PCE) index data for August aligned with market expectations.

These data points provided some insight into the state of the U.S. economy, influencing Bitcoin’s price movements. Investors closely monitored these figures, seeking clues about potential changes in the Federal Reserve’s monetary policy.

Jerome Powell’s Speech: The Main Event

The excitement surrounding the U.S. macroeconomic data was merely a prelude to the day’s main event: Jerome Powell’s speech. Powell, who had previously failed to significantly impact crypto markets with his words, was scheduled to speak at the Federal Reserve’s “Conversation with the Chair: A Teacher Town Hall Meeting” event in Washington, D.C., at 4:00 pm Eastern Time (8:00 pm UTC).

Crypto enthusiasts and investors were eagerly awaiting Powell’s remarks, hoping for insights into the Federal Reserve’s stance on monetary policy and its potential impact on the cryptocurrency market.

Bitcoin’s Current State

Amid the whirlwind of events, popular trader and analyst Daan Crypto Trades provided insights into the state of play in Bitcoin markets. He expressed optimism about the day’s price movement, especially when compared to the turbulence of September 27.

“Back to yesterday’s highs but with considerably less Open Interest,” Daan Crypto Trades noted. He also observed that while there were still long positions being opened, the market appeared less frenzied than the previous day. However, he emphasized the importance of caution among long positions to avoid a potential full retrace later on.

As seen in the accompanying chart, Daan Crypto Trades tracked open interest data as Bitcoin’s price surged higher, providing valuable insights for traders and investors.

Overcoming Resistance Trends

Another seasoned trader and analyst, Rekt Capital, highlighted key resistance trend lines that Bitcoin needed to overcome to establish a more substantial trend change. These resistance levels became critical markers for market participants, guiding their decisions as they navigated the volatile terrain of the crypto market.