Bitcoin may be on the cusp of a strong bullish breakout, as President Donald Trump sees Jerome Powell as the current chairman of the Federal Reserve.
Anyway, if the market starts pricing at low future interest rates, it usually weakens the dollar and increases the demand for alternative assets such as Bitcoin (BTC).
So far, Powell has resisted raising interest rates.
On Saturday’s check, Bitcoin was trading at $85,232.30. Its prices range between $84,000 and $85,000 between Support Points and Resistance Points, roughly 14% above the lowest point this month. See below.
Source: Coingecko
Under the US Federal Reserve Act, the president cannot fire the Speaker. The Fed is designed to be independent of political influence, allowing decisions to be made in the best interests of the economy, even if they are not popular in the White House.
But Trump’s White House has normalised its efforts to challenge virtually all political precedents, including rebelling against court orders on immigration and punishing press agencies they dislike.
And now, according to Kevin Hassett, director of the National Economic Council, Trump is studying whether he has the authority to replace Powell. His statement came after Trump told the press:
“I’m not happy with him. I let him know that. And oh, if I want him, he’ll come out of there really quickly. Trust me.
Trump’s statement followed Powell’s claim that the Fed is not in a hurry to cut interest rates. Instead, banks are focusing on Trump tariffs and whether they will lead to higher inflation. Another Fed official, Mary Daly, said interest rate cuts should be delayed if inflation persists at a high level.
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Experts believe Trump can fire Powell for a cause, which is often interpreted as cheating. If Trump eliminates him for no reason, it could attract a major legal challenge.
CNN reported that former Fed governor and crypto startup investor Kevin Wersch are considering making the chair a Fed after Trump’s time ended.
What does it mean for Bitcoin?
The Cryptocurrency Bulls believe they will fire the Fed’s chair as erosion of trust in the central bank. The theory is that such a move will lower the US dollar and increase Bitcoin over the long term.
Historically, the lack of independence of central banks often underperforms. Examples of these are the Turkish Lira and Zimbabwean Dollar.
The 4H chart below shows that Bitcoin has been in a tough range over the past few weeks. Keep an eye out for how it slightly surpassed the 50th moving average.
BTC Price Chart | Source: crypto.news
Most importantly, the coin formed a bullish pennant. This widely recognized bullish pattern consists of triangles that are symmetrical with vertical lines.
When the triangle is approaching the confluence, it often leads to a strong bullish breakout.
Therefore, Bitcoin is expected to make a strong bullish breakout, and we can see the next point reaching the highest level in April of $88,585.
read more: Bitcoin prices stick to the range: volatility decreases as markets wait for breakout
