Bitcoin Stabilizes Near $85,000 Awaiting Powell's Speech

Bitcoin's market sentiment has shown signs of stabilization, with the Binance Taker Buy Sell Ratio indicating a neutral stance. This metric, which measures the aggressiveness of market participants in buying and selling, suggests that both buying and selling pressures are currently balanced. According to DarkFost from CryptoQuant, this neutral reading signals rising bullish momentum, as it indicates that the market is in a state of equilibrium before a potential breakout.

Bitcoin is currently trading at $84,904.51, with a market capitalization of $1.68 trillion. Despite a slight 0.07% drop from the previous day, the cryptocurrency is eyeing a breakout above the $85,000 mark. The neutral ratio on Binance suggests that traders are closely monitoring market developments, with many predicting that Bitcoin will surpass this psychological threshold in the near future.

Federal Reserve Chair Jerome Powell's upcoming address on current inflation statistics and market projections is also drawing significant attention from market participants. Scheduled for 11:30 AM ET, Powell's speech is expected to provide clues about an upcoming interest rate cut, which could shape crypto market behavior. Market experts predict that a dovish stance from Powell could boost the attractiveness of Bitcoin and similar speculative assets, as a reduction in interest rates typically leads to U.S. dollar depreciation and increased demand for alternative value storage.

However, the market's reaction to Powell's speech remains uncertain. While a dovish stance could fuel additional purchasing activity and allow Bitcoin to overcome resistance at $85,000, unexpected hawkish statements could dampen market sentiment. Traders are therefore advised to exercise caution and closely monitor market developments in the coming days.