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Powell’s Remarks See Bitcoin’s Price Peak Dip, Ether Forms Doji at Record High

Bitcoin is grappling with a bearish tide, slipping back to pre-Powell levels after the Federal Reserve Chair’s dovish remarks initially buoyed hopes for a rate cut in September. As of today, BTC is hanging just above $112,000, a notable dip from its Friday peak of around $117,440. Analysts are buzzing about the technical implications of this retreat. For more on the initial surge, see Bitcoin price charges to $116K as Fed’s Powell hints at interest-rate cut.

Bitcoin’s Bearish Signals

The charts paint a telling picture. The pullback from $117,000 has carved out a lower high, nestled closely against the resistance line formed by an earlier bullish trendline dating back to April. This development isn’t just a blip. It underscores a breakdown in the prior trendline, hinting at the continuation of bearish price action.

Here’s the kicker: the Guppy Multiple Moving Average (GMMA) indicator is on the verge of confirming this bearish shift. The short-term exponential moving averages (the white band) are teetering on the edge of crossing below the longer-term averages (the red band). On a weekly scale, the MACD histogram began this week in the red, signaling potential downward momentum. For those watching the technicals closely, these patterns are like flashing neon signs.

BTC enthusiasts should keep an eye on key support levels. The $110,756 mark aligns with the lower boundary of the Ichimoku cloud, offering some technical solace. More robust support sits around the 200-day simple moving average near $100,000. To reignite the bulls, reclaiming the $117,440 high from Friday is crucial.

Ether’s Market Indecision

Meanwhile, Ether (ETH) is dancing to its own tune, albeit one marked by uncertainty. On Sunday, ETH printed a doji candle with a significant upper wick at record highs. This candlestick formation, born from the convergence of opening and closing prices, screams market indecision. The elongated upper shadow signals that despite the bulls’ push, bears managed to drag prices back down. This mirrors the recent trends observed in Ethereum, Bitcoin Spike After Powell Signals Interest Rate Cut.

While a doji doesn’t guarantee a reversal, it does spotlight the possibility of waning upward momentum. The 14-day relative strength index is echoing this sentiment, continuing to print lower highs—an ominous sign of potential corrections ahead. As a result, Ether slipped 3% to $4,624 at the time of writing.

For those tracking ETH’s support levels, $4,065 is a critical point, having served as a launchpad on August 20. Downside support extends to $4,000 and $3,805 (marked by the 50-day SMA), while resistance looms at the $5,000 mark.

A Market at Crossroads

Both Bitcoin and Ether are navigating choppy waters. The crypto market’s resilience—or lack thereof—in the face of favorable news like Powell’s speech is raising eyebrows. For BTC, the challenge is reclaiming lost ground, while ETH must overcome the shadow of indecision cast by its recent doji.

The coming weeks will be pivotal. With the potential for a Federal Reserve rate cut still in play, market players are left to ponder whether these bearish signals are mere pauses or precursors to more significant shifts. As always, the crypto world keeps everyone guessing.

Source

This article is based on: Bitcoin Chalks Out Lower Price High After Powell, Ether Prints Doji at Lifetime Peak

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