Bitcoin (BTC) gained nigh $1,500 in under an hour on Aug. 26 later an "uber dovish" speech by Federal Reserve Chair, Jerome Powell.

BTC/USD 1-hour candle nautical chart (Bitstamp). Source: TradingView

BTC toll action charges upwardly

Speaking at the virtual Jackson Hole almanac symposium, Powell hinted that the Fed would begin to reduce its asset purchases in place since the start of the Coronavirus pandemic.

A long-awaited betoken, the motility, referred to every bit "tapering," may come up this year, merely Powell did not requite a firm deadline for it to begin.

"Fifty-fifty later our asset purchases cease, our elevated holdings of longer-term securities will continue to support accommodative financial conditions," he said.

"The timing and pace of financial reduction of asset purchases will not exist intended to carry a direct indicate regarding the timing of interest charge per unit elevator-off, for which have articulated a unlike and substantially more than stringent test."

A reduction in asset purchases would probable have the air current out of the stock markets' sails, the Fed thus sparing indexes losses with Powell'due south remarks. The S&P 500 went on to hit fresh all-fourth dimension highs afte the speech.

At the aforementioned time, the U.Due south. dollar weakened, while Bitcoin showed clear force, hitting local highs of over $48,400 on Bitstamp.

Traders and analysts alike were clearly bullish.

"Put on your rally chapeau, futures have expired and bitcoin is rising," Scott Melker summarized, besides noting that the $two billion end-of-month expiry for open interest had completed.

Popular Twitter trader Ryan Cantering Clark meanwhile described Powell'southward tone equally "uber dovish" and advocated long positions.

Did Bitcoin just begin a new bullish surge?

Beyond the Fed, bullishness continued looking farther out at the coming weeks for Bitcoin.

Related: Grayscale Bitcoin Trust FUD is now over equally the last GBTC unlock totals merely 58 BTC

On Friday, annotator William Clemente went as far equally to telephone call the start of a new "bullish impulse" move similar to that seen at the terminate of July.

"After some turn a profit-taking earlier in the week, it appears that nosotros are starting another Bullish Impulse," he said, eyeing several on-chain metrics related to Bitcoin's "supply shock."

"Volition need to monitor these flows over the next few days, merely every bit of now leaning bullish for the coming 1-ii weeks."
Bitcoin supply shock metrics chart. Source: William Clemente/ Twitter

As Cointelegraph reported, the verdict on what is to come in Q4 this yr remains firmly bullish.