Bitcoin Hovers at $97K Ahead of Powell's Testimony

Bitcoin price hovers around $97K ahead of Fed Chairman Jerome Powell's testimony on Tuesday and Wednesday, with investors eagerly awaiting potential volatility and direction moves. The cryptocurrency has been consolidating for six days, and the upcoming testimony could catalyze a push towards $100K.

Powell is set to testify before the Senate Banking Committee on Tuesday at 10 AM. EST and the House Financial Services panel the following day. While the hearing is unlikely to directly push Bitcoin price to hit $100K, it may offer short-term volatility and influence the crypto markets. The Fed chairman is expected to indicate that the economy is resilient, highlight its dual mandate, and take a data-driven approach to reducing inflation.

According to Tim Duy of SGH Macro Advisors, Fed speakers agree that no rate cuts will occur until the second half of the year. However, the January jobs report, which came in at 143K, lower than the consensus of 170K, might call for rate cuts and could be bullish for Bitcoin and crypto markets. If Powell acknowledges this during the testimony and hints at a rate cut before June 2025, it could catalyze a risk-on behavior and propel Bitcoin price higher.

Nearly $80 million in short positions on Binance, Bybit, and Okex will face liquidation if the Bitcoin price clears $97,722, indicating heavy bearish sentiment. Conversely, $137 million in long positions will be closed if Bitcoin price crashes below $96,174. In the past 24 hours, roughly $247 million in positions faced liquidations, highlighting the crypto markets' overleveraged nature.

Bitcoin price today trades at $97,731.0 on 8 AM after hitting a daily high of $97,890.0 today after a 0.58% move on February 10. Bitcoin currently hovers around $97K, the Point of Control (POC), the highest trading volume level since November 2024. This barrier serves as a key support level that has prevented a deeper collapse and explains the recent consolidation. A reversal here could propel BTC to the value area high of $101.5K. However, overcoming this hurdle is critical for the uptrend to